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Sawyer Jewelers is considering a special order for 10 handcrafted gold watches which would be...

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Accounting

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Sawyer Jewelers is considering a special order for 10 handcrafted gold watches which would be given as retirement gifts. The customer is requesting a special watch face and would like to purchase each watch at a price of $350 for a total purchase price of $3,500. A gold watch normally sells for $390 with a unit product cost of $251.00 as shown below: 15 produced in any given period. Howevead is fixed and unaffected by variations in how much jewelry is watches produced. The special watch,$5 of the overhead is variable with respect to the number of would al so require the purchase of a face would require additional materials costing $6 per watch and special order is completed. This order wal tool costing \$ 356 that would have no other use once the could be fulfilled using the company's exild have no effect on the company's regular sales and the order sexisting capacity without affecting any other order. What effect would accepting this order have on the company's net operating income? Should the special order be accepted at this price

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