Jazzy Jax Jewelers is considering whether or not to accept a special order. The order calls for 20 handcrafted gold bracelets for retirees of a local bank. The CEO of the bank has offered to pay $169.95 per bracelet. The normal selling price of a gold bracelet is $189.95 and its unit product cost is $149.00 as shown below: Unit Cost Data Direct materials $ 84.00 Direct labor 45.00 Manufacturing overhead 20.00 Total Unit Cost $ 149.00 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $4.00 of the manufacturing overhead is variable with respect to the number of bracelets produced. The CEO of the bank also wants special filigree applied to the bracelets. This filigree would require additional materials costing $2.00 per bracelet and would also require the acquisition of a special tool costing $250 that would have no other use once the special order is completed. This order would have no effect on Jazzy Jax regular sales and the order could be fulfilled using the existing capacity without affecting any other order. Required 1. What effect would accepting this order have on Jazzy Jax Jewelers operating income, given the special price of $169.95? Based on your analysis, state whether the order be accepted? 2. Instead of the special filigree, the bank CEO thought diamond chips added to the bracelets might be better. Adding the diamond chips would cost $50.00 per bracelet. By adding diamond chips instead, Jazzy Jax would not have to acquire the special tool. Given this option, at what price would Jazzy Jax Jewelers have to charge per bracelet to earn the same operating profit as in #1 above