### dalton quilting company makes blankets that it markets through a variety of departme 4139381

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

Materials cost (\$10 per unit × 20,000)………………………\$200,000

Labor cost (\$9 per unit × 20,000) ……………………………180,000

Manufacturing supplies (\$1.50 × 20,000) …………………….30,000

Batch-level costs (20 batches at \$2,000 per batch)……………40,000

Product-level costs…………………………………………….80,000

Facility-level costs……………………………………………145,000

Total costs…………………………………………………..\$675,000

Cost per unit = \$675,000 ÷ 20,000 = \$33.75

Required

a. Sunny Motels has offered to buy a batch of 500 blankets for \$23.50 each. Dalton’s normal selling price is \$45 per unit. Based on the preceding quantitative data, should Dalton 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 \$28 per unit? Support your answer with appropriate computations.

c. Describe the qualitative factors that Dalton Quilting Company should consider before accepting a special order to sell blankets to Sunny Motels.

Dalton Quilting Company makes blankets that it markets through a