Exercise $13-4($Algo$)$ Special Order Decision $[$LO$13-4]$

Imperial Jewelers manufactures and sells a gold bracelet for $$410\mathrm{.}00.$ The company's accounting system says that the unit product

cost for this bracelet is $$259\mathrm{.}00$ as shown below:

The members of a wedding party have approached Imperial Jewelers about buying $16$ of these gold bracelets for the discounted price

of $$370\mathrm{.}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 $$5.$ Imperial Jewelers would also have to buy a special tool for $$464$ to apply the filigree to the

bracelets. Imperial Jewelers has determined that $$6\mathrm{.}00$ of the manufacturing overhead is variable with respect to the number of

bracelets produced.

Required:

What is the financial advantage $($disadvantage$)$ of accepting the special order from the wedding party?

Should the company accept the special order?