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Sato Jewellers has had a request for a special order for 10 gold bangles for the members of a wedding party. The normal selling price of a gold bangle is $270.00 and its unit product cost is $180.00, as shown below: $100.00 60.00 Direct materials Direct labour Manufacturing overhead 20.00 Unit product cost $180.00 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewellery is produced in any given period. However, $5 of the overhead is variable, depending on the number of bangles produced. The customer would like special filigree applied to the bangles. This filigree would require additional materials costing $4 per bangle and would also require acquisition of a special tool costing $300 that would have no other use once the special order was completed. This order would have no effect on the company's regular sales, and the order could be filled using the company's existing capacity without affecting any other order. Required: a. What effect would accepting this order have on the company's operating income if a special price of $240.00 is offered per bangle for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net operating income by b. Should the special order be accepted at this price? Yes No Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in their own homes within the Cumberland County area. Three services are provided for seniorshome nursing, Meals on Wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for the past year follow: Home Meals on House- Total Nursing Wheels keeping $954,000 $275,600 $424,000 $254,400 524,200 128,400 225,000 170,800 Revenues Variable expenses Contribution margin 429,800 147,200 199,000 83,600 70,280 44,220 Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 8,480 20,900 41,500 40,900 7,600 38,900 20,900 15,720 118,900 38,500 190,800 55,120 84,800 50,880 Total fixed expenses 424,200 126,000 172,200 126,000 Operating income (loss) $ 5,600 $ 21,200 $ 26,800 $ (42,400) *Allocated on the basis of program revenues