EXERCISE 11-10 Evaluating a Special Order (L04) Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets for a major upscale wedding. The gold bracelets are to be given as gifts to members of the wedding party. The normal selling price of a gold bracelet is $389.95 and its unit product cost is $264.00 as shown below: Materials. ......... ... $143.00 $149.00 Direct labor ......... 86.00 Manufacturing overhead... 35.00 Unit product cost....... $264.00 Chapter 11 The manufacturing overhead is largely fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7.00 of the overhead is variable with respect to the number of bracelets pro duced. The customer who is interested in the special bracelet order would like special filigree applied to the bracelets. This filigree would require additional materials costing $6.00 per bracelet and would also require acquisition of a special tool costinge 165 that would have no other use once the special order is completed This order would have no effect on the company's regular sales and the order could be fulfilled using the company's existing capacity without affecting any other order. No po cest Required: What effect would accepting this order have on the company's net operating income if a special price of $349.95 is offered per bracelet for this order? Should the special order be accepted at this price