RECOMMENDED!!Levy Quilting Company makes blankets that it markets

  

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 ($20 per unit × 20,000)$ 400,000Labor cost ($18 per unit × 20,000) 360,000Manufacturing supplies ($3 × 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 = $67.50 Questiona.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 Requirementachange if Rios offered to buy a batch of 1,000 blankets for $56 per unit? Support your answer with appropriate computations.

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