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4 Baird Company, which produces and sells a small digital clock, bases its pricing strategy on a 30 percent markup on total cost. Based on
4 Baird Company, which produces and sells a small digital clock, bases its pricing strategy on a 30 percent markup on total cost. Based on annual production costs for 14,000 units of product, computations for the sales price per clock follow: 2 points Unit-level costs Fixed costs Total cost (a) Markup (a x 0.30) Total sales (b) Sales price per unit (b + 14,000) $210,000 70,000 280,000 84,000 $364.900 eBook $ 26 Required Print a. Baird has excess capacity and receives a special order for 6,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Baird accept the special order? b. Prepare a contribution margin income statement for the special order. References Complete this question by entering your answers in the tabs below. Required A Required B Baird has excess capacity and receives a special order for 6,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Baird accept the special order? S Contribution margin per unit Should Baird accept the special order? Yes Required A Required B > Check my work 4 Baird Company, which produces and sells a small digital clock, bases its pricing strategy on a 30 percent markup on total cost. Based on annual production costs for 14,000 units of product, computations for the sales price per clock follow: points Unit-level costs Fixed costs Total cost (a) Markup (a x 0.30) Total sales (b) Sales price per unit (b + 14,000) 5210,000 70,000 280,000 84,000 5364,800 S 26 eBook Hint Required Pont a. Baird has excess capacity and receives a special order for 6,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Baird accept the special order? b. Prepare a contribution margin income statement for the special order. References Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution margin income statement for the special order. BAIRD COMPANY Contribution Margin Income Statement
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