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ABC Inc manufactures and sells a watch for $189.95. The company's accounting system says that the unit product cost for this watch is $149.00 as shown below: The members of a wedding party have approached ABC Inc. about buying 20 of these watches for the discounted price of $169.95 each. The members of the wedding party would like special lettering applied to the watch that would increase the direct materials cost per watch by $2.00. ABC Inc. would also have to buy a special tool for $250 to apply the lettering to the watches. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, ABC. Inc has determined that most of its manufacturing overhead is fixed and unaffected by variations in how many watches is produced in any given period. However, $4.00 of the overhead is variable with respect to the number of watches produced. The company also believes that accepting this order would have no effect on its ability to produce and sell wwatches to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Should the company accept the special order? (yes or no)

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