Smith Quilting Company makes blankets that are marketed through a variety of department stores. The production process is a batch production process and the maximum number of blankets per batch is 1,500 (Batch size can be less than 1,500). The budgeted cost of production for the current year is given below: Budgeted Production quantity 20,000 blankets Budgeted Number of batches 20 batches Unit level costs Direct Materials Cost @ $26.00 per unit $520,000 Direct Labor cost @ $22.00 per unit $440,000 Manufacturing supplies@ $3.00 per unit $60,000 Batch level costs @ $3,000.00 per batch $60,000 Product level costs $320,000 Facility level costs $390,000 Total costs $1,790,000 Cost per unit $ 1,790,000 + 20,000 $89.50 Usual selling price per blanket $91.00 per unit Required: Part A) Rao Motels has approached Smith for a one time business with the following proposition. Special order quantity 500 blankets Purchase price $52.00 per unit Calculate the relevant cost of this special order (from Rao Motels) to Smith (3 points). Calculate the prot impact of this order to Smith. Should Smith accept this offer? Why or Why not? (2 points) Assume that Smith has enough capacity to execute the special order in one batch. Part 3) Independent of your answer to Part (A), consider the following one time business proposal from Rao Motels to Smith. Special order quantity 1500 blankets Purchase price $54.00 per unit Calculate the relevant cost of this special order (from Rao Motels) to Smith (3 points). Calculate the prot impact of this order to Smith. Should Smith accept this offer? Why or Why not? (2 points) Assume that Smith has enough capacity to execute the special order in one batch