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Problem 13-24 Effect of order quantity on special order decision LO 13-2 Levy Quilting Company...

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Problem 13-24 Effect of order quantity on special order decision LO 13-2 Levy Quilting Company makes blankets that it markets through a variety of department stores It makes the blankets in batches of 1,000 units. Levy made 20,000 blankets during the prior accounting period. The cost of producing the blankets is summarized as follows Materials cost ($26 per unit x 20,000) Labor cost ($22 per unit 20,000) Manufacturing supplies ($320,000) Batch-level costs (20 batches at $3,000 per batch) Product-level costs Facility-level costs 520,000 440,000 60,000 60,000 320,000 390,000 Total costs $1,790,000 Cost per unit-$1,790,000 + 20,000-s89 50 Required a.1. Rios Motels has offiered to buy a batch of 500 blankets for $52 each. Levy's normal selling price is $91 per unit, calculate the relevant cost per unit for the special order per unit a-2. Should Levy accept the special order? O No Yes O Type here to search

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