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Problem 13-24A (Algo) Effect of order quantity on special order decision LO 13-2 Fonning Quilting Company makes blankets that it markets through a variety of

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Problem 13-24A (Algo) Effect of order quantity on special order decision LO 13-2 Fonning Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units, Fonning made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cont (525 per unit 25.000) Labor cont (520 per unit 25,000 Manufacturing supplies (6325.000) Bate-level costo (10 batches at $5,000 per batch Product-level coats Tellity-level costa Total costa Cont per unit - $1,790,000 - 25,000 - $71.60 625.000 500.000 75.000 50,000 240,000 300,000 81.790,000 Required a. Sunny Motels has offered to buy a batch of 500 blankets for $55 each Fanning's normal selling price is 598 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Fanning accept the special order? b. Sunny offered to buy a batch of 2,500 blankets for $55 per unit calculate the relevant cost per unit for the special order Should Fanning accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.)

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