Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a 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 $193.50 and its unit product cost is $177.00, as shown: The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery is produced in any given period. However, 20% of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special filigree applied to the bracelets. This would require additional materials costing $8.50 per bracelet and would also require acquisition of a special tool costing $410 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 fulfilled using the company's existing capacity without affecting any other order. What effect would accepting this order have on the company's net operating income if a special price of $186.00 is offered per bracelet for this order? Net operating income by Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses Contribution margin Les5: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,098,000 61,000 671,000$(213,500)1,830,000 Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a j created elsewhere for a long-term employee currently earning an annual salary of $91,500. Required: Calculate the increase or decrease in the operating income in both alternatives. Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a 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 $193.50 and its unit product cost is $177.00, as shown: The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery is produced in any given period. However, 20% of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special filigree applied to the bracelets. This would require additional materials costing $8.50 per bracelet and would also require acquisition of a special tool costing $410 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 fulfilled using the company's existing capacity without affecting any other order. What effect would accepting this order have on the company's net operating income if a special price of $186.00 is offered per bracelet for this order? Net operating income by Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses Contribution margin Les5: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,098,000 61,000 671,000$(213,500)1,830,000 Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a j created elsewhere for a long-term employee currently earning an annual salary of $91,500. Required: Calculate the increase or decrease in the operating income in both alternatives