Hello I need help with this question please
Baird Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Baird made 26,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($27 per unit x 26,000) $ 702,000 Labor cost ($21 per unit x 26,000) 546,000 Manufacturing supplies ($2 x 26,000) 52,000 Batch-level costs (26 batches at $4,000 per batch) 104,000 Product-level costs 200,000 Facility-level costs 310,000 Total costs $1, 914, 000 Cost per unit = $1, 914,000 + 26,000 = $73.6 Required a. Sunny Motels has offered to buy a batch of 400 blankets for $58 each. Baird's normal selling price is $94 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Baird accept the special order? b. Sunny offered to buy a batch of 1,000 blankets for $58 per unit, calculate the relevant cost per unit for the special order. Should Baird accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a. Cost per unit Should Baird accept the special order? b Cost per unit Should Baird accept the special order?Baird Chemical Company makes a variety of cosmetic products. one of which is a skin cream designed to reduce the signs of aging. Baird produces a relatively small amount [17,000 units] of the cream and is considering the purchase of the product from an outside supplier for $4.70 each. If Baird purchases from the outside supplier, it would continue to sell and distribute the cream under its own brand name. Baird's accountant constructed the following protability analysis: Revenue (17,000 units X $11.00} $187,000 Unit-level materials costs (17,000 units x $1.60) (27,200} Unit-level labor costs [17,000 units x $0.?0} (11,900} Unit-level overhead costs (13,000 K $0.30] (5,100} Unit-level selling expenses [17,000 X 50.40) {6,300} Contribution margin 136,000 Skin cream production supervisor's salary (43,000} Allocated portion of facilitylevel costs (11,000} Product-level advertising cost [39,0003 Contribution to canpanywide income 5 37,200 | Required e. Identify the cost items relevant to the make-oroutsource decision. b. What is the avoidable cost per unit if the outsourcing decision is taken? Should Baird continue to make the product or buy it from the supplier? c. Suppose that Baird is able to increase sales by 10,000 units (sales will increase to 27,000 units). Calculate the total avoidable costs. At this level of production, should Baird make or buy the cream? Complete this question by entering your answers In the tabs below. Required A Required B Required (2 Identify the cost itJerns relevant to the rnske-orhoutsource decision. _:I Revenue (17,000 units * $11 .00) $187, 000 Unit-level materials costs (17,000 units x $1.60) (27,200) Unit-level labor costs (17,000 units x $0.70) (11, 900) Unit-level overhead costs (17,000 * $0.30) (5, 100) Unit-level selling expenses (17,000 * $0.40) (6, 800) Contribution margin 136,000 Skin cream production supervisor's salary (48, 000) Allocated portion of facility-level costs (11, 800) Product-level advertising cost (39,000) Contribution to companywide income $ 37, 200 Required a. Identify the cost items relevant to the make-or-outsource decision. b. What is the avoidable cost per unit if the outsourcing decision is taken? Should Baird continue to make the product or buy it from the supplier? c. Suppose that Baird is able to increase sales by 10,000 units (sales will increase to 27,000 units). Calculate the total avoidable costs. At this level of production, should Baird make or buy the cream? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the avoidable cost per unit if the outsourcing decision is taken? Should Baird continue to make the product or buy it from the supplier? (Round your answer to 2 decimal places.) Total avoidable costs per unit Should Baird continue to make the product or buy it from the supplier?-....... -......- ...._.-........ _.._..... '-.,....... .7-....., \"q--." Unit-1eve1 selling expenses (17.000 x 50.40) {6,300} Contribution margin 136,000 Skin cream production supervisor's salary [43,0003 Allocated portion of facility-level costs (11,800} Productlevel advertising cost 39,000} Contribution to companywide income 3 37,200 | Required e. Identify the cost items relevant to the ma keoroutsource decision. b. What is the avoidable cost per unit if the outsourcing decision is taken? Should Baird continue to make the product or buy it from the supplier? c. Suppose that Baird is able to increase sales by 10,000 units (sales will increase to 27,000 units). Calculate the total avoidable costs. At this level of production, should Baird make or buy the cream? Complete this question by enterlng your owners In the tabs below. Required A Required B Required I: Suppose that Baird is able to Increase sales by 10,000 units (sales Iilirlll Increase to 27,000 units]. Calculate the total avoidable Costs. At this level of production, should Baird make or buy the cream? Total avoidable costs At this level at production, should Baird make or buy the cream? 4.. Required B Buy Make
