Subject name: Accounting & Finance Decision-Making Mangers

The below problem is a Differential Analysis problem, including *****Special Order type problem*** Please utilize differential analysis to solve the problems. Please show all work and responses in the answer with an explanation on each Excel worksheet

Question: 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:

Direct materials				$ 138.00
Direct labor				83.00
Manufacturing overhead				30.00
Unit product cost				$ 251.00

Most of Sawyers manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $5 of the overhead is variable with respect to the number of watches produced. The special watch face would require additional materials costing $6 per watch and would also require the purchase of a special tool costing $356 that would have no other use once the special order is completed. This order would have no effect on the companys regular sales and the order could be fulfilled using the companys existing capacity without affecting any other order.