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Problem 13-24 Effect of order quantity on special order decision LO 13-2 Franklin Quilting Company makes blankets that it markets through a variety of department
Problem 13-24 Effect of order quantity on special order decision LO 13-2 Franklin Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 3,500 units. Franklin made 35,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($28 per unit x 35,000) Labor cost (S26 per unit x 35,000) Manufacturing supplies (S4 x 35, 000) Batch-level costs (10 batches at $7,000 per batch) Product-level costs Facility-level costs Total costs $980,000 910,000 140,000 70, 000 220,000 320,000 $2,640,000 Cost per unit $2,640,00035, 000 $75.4 Required o. Sunny Motels has offered to buy a batch of 500 blankets for $64 each. Franklin'3normal selling price is $93 per unit. Calcul relevant cost per unit for the special order. Based on the preceding quantitative data, should Franklin accept the sp Franklin accept the special order? b. Sunny offered to buy a batch of 3,500 blankets for $64 per unit, calcu late the relevant cost per unit for the special order. Should
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