Check my work Since 1975. Omega Corporation has produced high quality watches for men and women....

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Check my work Since 1975. Omega Corporation has produced high quality watches for men and women. Currently. Omega sells a silver watch for $409.00. The unit product cost for this silver watch is $265.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $148 83 34 $265 Alpha Company has approached Omega about buying 28 silver watches for the discounted price of $369.00 each, Alpha Company would like a special watch strap applied to the watches that would require Omega to buy a special tool for $456 and that would increase the direct materials cost per watch by $4. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Omega Corporation has determined that most of its manufacturing overhead is fixed and unaffected by variations in how many watches are produced in any given period. However, $5.00 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 watches to other customers. Furthermore, the company could fulfill the special order using its existing manufacturing capacity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 What is the financial advantage (disadvantage) of accepting the special order from Alpha Company? Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Should the company accept the special order? Yes ONO < Required 1 Required 2 Check my work Since 1975. Omega Corporation has produced high quality watches for men and women. Currently. Omega sells a silver watch for $409.00. The unit product cost for this silver watch is $265.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $148 83 34 $265 Alpha Company has approached Omega about buying 28 silver watches for the discounted price of $369.00 each, Alpha Company would like a special watch strap applied to the watches that would require Omega to buy a special tool for $456 and that would increase the direct materials cost per watch by $4. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Omega Corporation has determined that most of its manufacturing overhead is fixed and unaffected by variations in how many watches are produced in any given period. However, $5.00 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 watches to other customers. Furthermore, the company could fulfill the special order using its existing manufacturing capacity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 What is the financial advantage (disadvantage) of accepting the special order from Alpha Company? Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Should the company accept the special order? Yes ONO < Required 1 Required 2

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Current Unit Product Cost for Silver Watch Direct materials 14800 Direct labor 8300 Manufacturing ov... View the full answer