Thornton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Thornton made 35,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here.

Materials cost ($28 per unit 35,000)$980,000 Labor cost ($23 per unit 35,000) 805,000 Manufacturing supplies ($8 35,000) 280,000 Batch-level costs (35 batches at $5,000 per batch) 175,000 Product-level costs 290,000 Facility-level costs 360,000 Total costs$2,890,000 Cost per unit = $2,890,000 35,000 = $82.57

Required

Sunny Motels has offered to buy a batch of 500 blankets for $67 each. Thorntons normal selling price is $98 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Thornton accept the special order?

Sunny offered to buy a batch of 1,000 blankets for $67 per unit, calculate the relevant cost per unit for the special order. Should Thornton accept the special order?

(For all requirements, round "Cost per unit" to 2 decimal places.)

\begin{tabular}{|l|l|} \hline a. & Cost per unit \\ \hline & Should Thornton accept the special order? \\ \hline b. & Cost per unit \\ \hline & Should Thornton accept the special order? \\ \hline \end{tabular}