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Week 5 Homework Problem 13-24 Effect of order quantity on special order decisionLevy Quilting Company makesblankets thatit markets ti Materials cost ($20 per unit 3
Week 5 Homework Problem 13-24 Effect of order quantity on special order decisionLevy Quilting Company makesblankets thatit markets ti Materials cost ($20 per unit 3 20,000) $ 400,000 Labor cost ($18 per unit 3 20,000) 360,000 Manufacturing supplies ($3 3 20,000) 60,000 Batch-level costs (20 batches at $4,000 per batch) 80,000 Product-level costs 160,000 Facility-level costs 290,000 Total costs $1,350,000 Cost per unit = $1,350,000 / 20,000 = $67.50 Required a. Rios Motels has offered to buy a batch of 500 blankets for $47 each. Levy's normal selling price i b. Would your answer to Requirement a change if Rios offered to buy a batch of1,000 blankets for $ c. Describe the qualitative factors that Levy Quilting Company should consider before accept-ing a
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