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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
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. Unitlevel costs $ 210,000 Fixed costs 70,000 Total cost (a) 280,000 Markup (a X 0.30) 84,000 Total sales (b) $ 364,000 Sales price per unit (h + 14,000) $ 26 Req uired 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. 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? Contribution margin per unit Should Baird accept the special order? 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 follows Unitlevel costs $ 210,000 Fixed costs 70,000 Total cost (a) 230,000 Markup (a x 0.30) 84,000 Total sales (b) $ 364,000 Sales price per unit (b + 14,000) $ 26 Required 3. 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. 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
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