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Finch Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Finch made
Finch Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Finch made 26,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($24 per unit 26,000) Labor cost ($19 per unit * 26,000) Manufacturing supplies ($2 * 26,000) Batch-level costo (26 batches at $8,000 per batch) Product-level costs Facility-level costs Total costs Cont per unit - $1,968,000 + 26,000 - $75.7 $ 624,000 494,000 52,000 208,000 280,000 310,000 $1,968,000 Required a. Sunny Motels has offered to buy a batch of 400 blankets for $60 each. Finch's normal selling price is $96 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Finch accept the special order? b. Sunny offered to buy a batch of 1,000 blankets for $60 per unit, calculate the relevant cost per unit for the special order. Should Finch accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a. Cost per unit Should Finch accept the special order? b. Cost per unit Should Finch accept the special order
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