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Gibson Quilting Company makes blankets that it markets through a variety of department stores. It...

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Accounting

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Gibson Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 3,000 units. Gibson made 30,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($29 per unit x 30,000) Labor cost ($25 per unit x 30,000) Manufacturing supplies ($6 x 30,000) Batch-level costs (10 batches at $6,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit - $2,380,000 - 30,000 - $79.3 870,000 750,000 180,000 60.000 190,000 330,000 $2,380,000 Required a. Sunny Motels has offered to buy a batch of 600 blankets for $62 each. Gibson's normal selling price is $94 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Gibson accept the special order? b. Sunny offered to buy a batch of 3,000 blankets for $65 per unit, calculate the relevant cost per unit for the special order. Should Gibson accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a Cost per unit Should Gibson accept the special order? b. Cost per unit Should Gibson accept the special order?

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