Ellis Quilting Company makes blankets that it markets through a variety of depar

Question

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

Materials cost ($25 per unit x 20, 0000) $500,000

Labor Cost ($22 per unit x 20,000)440,000

Manufacturing supplies ($2 x 20,000)40,000

Batch-level costs (20 batches at $4000 per batch80, 000

Product-level costs160, 000

Facility-level costs290, 000

Total costs1, 510,000

Cost per unit = $1510, 000 / 20,000= $75.50




Question

Describe the qualitative factors that Ellis Quilting Company should consider before accepting a special order to sell blankets to Kent Motels.

Explanation / Answer

a. Kent Motels has offered to buy a batch of 500 blankets for $56 each. Ellis

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.