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Adams Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units. Adams made

Adams Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units. Adams made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here.

Materials cost ($26 per unit 25,000) $ 650,000
Labor cost ($20 per unit 25,000) 500,000
Manufacturing supplies ($3 25,000) 75,000
Batch-level costs (10 batches at $5,000 per batch) 50,000
Product-level costs 90,000
Facility-level costs 300,000
Total costs $ 1,665,000
Cost per unit = $1,665,000 25,000 = $66.6

A. Sunny Motels has offered to buy a batch of 500 blankets for $56 each. Adamss normal selling price is $92 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Adams accept the special order?

B. Sunny offered to buy a batch of 2,500 blankets for $56 per unit, calculate the relevant cost per unit for the special order. Should Adams accept the special order?

(For all requirements, round "Cost per unit" to 2 decimal places.)

a. Cost per unit -------------------------

-Should Adams accept the special order-----------------------------

b. Cost per unit-------------------------------

-Should Adams accept the special order --------------------------------------

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