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.

1. Sunny Motels has offered to buy a batch of 400 blankets for $60 each. Finchs 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?

2. 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?

Materials cost ($24 per unit x 26,000) Labor cost ($19 per unit x 26,000) Manufacturing supplies ($2 * 26,000) Batch-level costs (26 batches at $8,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $1,968,000 = 26,000 = $75.7 $ 624,000 494,000 52,000 208,000 280,000 310,000 $1,968,000 a. Cost per unit Should Finch accept the special order? b. Cost per unit Should Finch accept the special order