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Solomon Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Solomon made
Solomon Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Solomon made 35,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost $32 per unit x 35,000) Labor cost ($28 per unit x 35,000) Manufacturing supplies ($5 x 35,000) Batch-level costs (35 batches at $7,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $3,160,000 = 35,000 = $90.3 $1,120,000 980,000 175,000 245,000 300,000 340,000 $3,160,000 Required a. Sunny Motels has offered to buy a batch of 700 blankets for $62 each. Solomon's normal selling price is $98 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Solomon accept the special order? b. Sunny offered to buy a batch of 1,000 blankets for $73 per unit, calculate the relevant cost per unit for the special order. Should Solomon accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a Cost per unit Should Solomon accept the special order? Cost per unit Should Solomon accept the special order
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