Imperial Jewelers manufactures and sells a gold bracelet for $189.95. The companys accounting system says that the unit product cost for this bracelet is $149.00 as shown below:

Direct materials	$	84.00
Direct labor		45.00
Variable Manufacturing overhead		4.00
Fixed Manufacturing overhead		16.00
Unit product cost	$	149.00

The members of a wedding party have approached Imperial Jewelers about buying 20 of these gold bracelets for the discounted price of $169.95 each. The members of the wedding party would like special filigree applied to the bracelets that need a special tool which would cost $290 to apply the filigree to the bracelets.

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, $4.00 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 fixed manufacturing overhead.

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?