What effect would this order have on the company

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The normal selling price of a gold bracelet is 389.95 and it its unit product cost is 264 as show below/ direct material-143.00 direct labor= 86 dollar manufacturing overhead=35 most of the manufacturing overhead is fix and unaffected by variation in how much jewlerly is produced in any given period. however 7 dollar of the overhead is variable with respect to the number of braclet produce. the client who is intrested in the special braclet order would like special fillgree applied to the bracelets.. this filling would require additional material costing 6 dollar per bracelet and would also require acquisition of a a special tool costing 465 that would have no other use once this special order is completed. this order has no effect on the company regular sale and the order could be fulfill using the company existing without affect any other order/

Question- what effect would this order have on the company net operation income if a special price of 349.95 is offer per brracelet for this order. should the special order be accepted at this price

Reference no: EM13330728

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