Campbell Company, which produces and sells a small digital clock, bases its pricing strategy on a 20 percent markup on total cost. Based on annual production costs for 11,000 units of product, computations for the sales price per clock follow.

Unit-level costs	$	198,000
Fixed costs		77,000
Total cost (a)		275,000
Markup (a 0.20)		55,000
Total sales (b)	$	330,000
Sales price per unit (b 11,000)	$	30

Required

1. Campbell has excess capacity and receives a special order for 8,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Campbell accept the special order?

2. Prepare a contribution margin income statement for the special order