Question: 1 ints Problem 13-24A (Algo) Effect of order quantity on special order decision LO 13-2 Jordan Quilting Company makes blankets that it markets through
1 ints Problem 13-24A (Algo) Effect of order quantity on special order decision LO 13-2 Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units. Jordan made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($30 per unit 25,000) $750,000 Labor cost ($24 per unit 25,000) 600,000 Book Manufacturing supplies ($725,000) 175,000 Batch-level costs (10 batches at $5,000 per batch) Product-level costs 50,000 200,000 Facility-level costs 290,000 Total costs $2,065,000 Cost per unit $2,065,000 25,000 - $82.60 References ME Required a. Sunny Motels has offered to buy a batch of 500 blankets for $64 each Jordan's normal selling price is $90 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Jordan accept the special order? b. Sunny offered to buy a batch of 2,500 blankets for $64 per unit, calculate the relevant cost per unit for the special order. Should Jordan accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) a Cost per unit Should Jordan accept the special order? b. Cost per unit Should Jordan accept the special order? > Check my work
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
