Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting system says that the unit

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Imperial Jewelers manufactures and sells a gold bracelet for
$407.00. The company’s accounting system says that the unit product
cost for this bracelet is $268.00 as shown below:
The members of a wedding party have approached Imperial Jewelers
about buying 24 of these gold bracelets for the discounted price of
$367.00 each. The members of the wedding party would like special
filigree applied to the bracelets that would increase the direct
materials cost per bracelet by $10. Imperial Jewelers would also
have to buy a special tool for $455 to apply the filigree to the
bracelets. The special tool would have no other use once the
special order is completed.
To analyze this special order opportunity, Imperial Jewelers has
determined that most of its manufacturing overhead is fixed and
unaffected by variations in how much jewelry is produced in any
given period. However, $11.00 of the overhead is variable with
respect to the number of bracelets produced. The company also
believes that accepting this order would have no effect on its
ability to produce and sell jewelry to other customers.
Furthermore, the company could fulfill the wedding party’s order
using its existing manufacturing capacity.
Required:
1. What is the financial advantage (disadvantage) of accepting
the special order from the wedding party?
2. Should the company accept the special order?