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X Xfinity G Gmail YouTube Maps Inchurl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question. Ch 13 HW i Saved Problem 13-24A (Algo) Effect of order quantity on special order decision LO 13-2

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X Xfinity G Gmail YouTube Maps Inchurl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question. Ch 13 HW i Saved Problem 13-24A (Algo) Effect of order quantity on special order decision LO 13-2 5 Benson Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of points 3,000 units. Benson made 27,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($28 per unit x 27,090) Labor cost ($22 per unit x 27,000) 756, 000 594, 000 Book Manufacturing supplies ($4 x 27,080) 108 , 000 Batch-level costs (9 batches at $6,000 per batch) 54 , 000 Product - level costs 220, 000 Facility-level costs 280, 000 Print Total costs $2, 012, 000 Cost per unit = $2, 012, 000 : 27,000 = $74.52 References Required a. Sunny Motels has offered to buy a batch of 500 blankets for $59 each. Benson's normal selling price is $93 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Benson accept the special order? b. Sunny offered to buy a batch of 3,000 blankets for $63 per unit, calculate the relevant cost per unit for the special order. Should Benson accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a. Cost per unit Should Benson accept the special order? Cost per unit Should Benson accept the special order? 45"F Sunny ~ 5 0 4 G O

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