Question
Perez Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Perez made
Perez Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Perez made 29,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($28 per unit 29,000) $ 812,000 Labor cost ($24 per unit 29,000) 696,000 Manufacturing supplies ($3 29,000) 87,000 Batch-level costs (29 batches at $3,000 per batch) 87,000 Product-level costs 230,000 Facility-level costs 310,000 Total costs $ 2,222,000 Cost per unit = $2,222,000 29,000 = $76.62 Required Sunny Motels has offered to buy a batch of 500 blankets for $59 each. Perezs normal selling price is $96 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Perez accept the special order? Sunny offered to buy a batch of 1,000 blankets for $59 per unit, calculate the relevant cost per unit for the special order. Should Perez accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a. Cost per unit Should Perez accept the special order? b. Cost per unit Should Perez accept the special order?
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