solved: Levy Quilting Company makes blankets that it

markets through a
solved: Levy Quilting Company makes blankets that it markets through a
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 th
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blankets-that-it-markets-through-a
solved: Levy Quilting Company makes blankets that it markets through a
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 here.Materials cost ($20
per unit x 20,000) ......... $ 400,000Labor cost ($18 per unit x 20,000) ...........
360,000Manufacturing supplies ($3 x 20,000) ......... 60,000Batch-level costs (20 batches at
$4,000 per batch) .... 80,000Product-level costs ................. 160,000Facility-level costs
................. 290,000Total costs .................... $1,350,000Cost per unit – $1,350,000 ÷ 20,000 –
$67.50Requireda. Rios Motels has offered to buy a batch of 500 blankets for $47 each. Levy’s
normal selling price is $90 per unit. Based on the preceding quantitative data, should Levy
accept the special order? Support your answer with appropriate computations.b. Would your
answer to Requirement a change if Rios offered to buy a batch of 1,000 blankets for $56 per
unit? Support your answer with appropriate computations.c. Describe the qualitative factors that
Levy Quilting Company should consider before accepting a special order to sell blankets to Rios
Motels.View Solution:
solved: Levy Quilting Company makes blankets that it markets through a
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