I need help with part A please: Problem 13-24 Effect...
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I need help with part A please:
Problem 13-24 Effect of order quantity on special order decision LO 13-2 Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Dalton made 20,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here Materials cost ($10 per unit x 20,000) Labor cost ($9 per unit x 20,000) Manufacturing supplies ($1.50 x 20,000) Batch-level costs (20 batches at $2,000 per batch) Product-level costs Facility-level costs Total costs $200,000 180,000 30,000 40,000 80,000 145,000 $675,000 Cost per unit$675,000+20,000-$33.75 Required a. Sunny Motels has offered to buy a batch of 500 blankets for $23.50 each. Dalton's normal selling price is $45 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Dalton accept the special order? b. Sunny offered to buy a batch of 1,000 blankets for $23.50 per unit, calculate the relevant cost per unit for the special order Should Dalton accept the special order
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