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Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet is $264.00 as shown below:
Direct materials $146
Direct labor 87
Manufacturing overhead 31
Unit product cost $264
Required:
Question 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party?
Question 2. Should the company accept the special order?
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