The members of a wedding party have approached imperial jewelers about buying 13 of these gold bracelets for the discounted price of $366.00 each. the members of the wedding party would like special filigree applied to the bracelets that would require imperial jewelers to buy a special tool for $458 and that would increase the direct materials cost per bracelet by $12. the special tool would have no other use once the special order is completed.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)