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Cowboy Ice Cream Company (CIC) produces ice cream bars that it markets through a variety of grocery stores. It makes the ice cream bars in
Cowboy Ice Cream Company (CIC) produces ice cream bars that it markets through a variety of grocery stores. It makes the ice cream bars in batches of 5,000 units. CIC produced 30,000 Ice cream bars during the prior accounting period. The cost of producing the ice cream bars is shown below Materials cost (530 per unit x 30,000) Labor cost ($22 per unit 30,000) Manufacturing supplies ($5 x 30,000) Batch-level costs (6 batches at $5,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit - $2,620,000 + 30,000 - $82.33 $ 900,000 110,000 350,000 30,000 330,000 400,000 $2,620,00 Required a. OnCue has offered to buy a batch of 1,000 ice cream bars for $62 each IC's normal selling price is $90 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should CIC accept the special order? b. OnCue offered to buy a batch of 5,000 ice cream bars for $65 per unit, calculate the relevant cost per unit for the special order, Should CIC accept the special order? (For all requirements.round "Cost per unit" to 2 decimal places.) Cost per unit Should CIC accept the special order? b. Cost per un Should CIC accept the special order
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