Awtrey Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Awtrey made 20,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here.

Required
a. Sunny Motels has offered to buy a batch of 500 blankets for $51 each. Awtrey's normal selling price is $90 per unit. Based on the preceding quantitative data, should Awtrey accept the special order? Support your answer with appropriate computations.
b. Would your answer to Requirement a change if Sunny offered to buy a batch of 1,000 blankets for $51 per unit? Support your answer with appropriate computations.
c. Describe the qualitative factors that Awtrey Quilting Company should consider before accepting a special order to sell blankets to SunnyMotels.

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Materials cost (S21 per unit x 20,000) Labor cost ($22 per unit X 20,000) Manufacturing supplies (S2 X 20,000) Batch-level costs (20 batches at S4,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit $1,430,000 ÷ 20,000 $71.50 S 420,000 440,000 40,000 80,000 160,000 290,000 $1,430,000