Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35 percent markup on total cost Based on annual production costs for 12,000 units of product, computations for the sales price per clock follow Unit level costs Fixed costs Total cost (a) Markup (a x 0 35) Total sales (6) Sales price per unit (b 12,000) $240,000 80,000 320,000 112,000 $432,000 36 Required a Franklin has excess capacity and receives a special order for 5,000 clocks for $24 each Calculate the contribution margin per unit Based on this, should Franklin accept the special order b Prepare a contribution margin income statement for the special order Required A Required B Franklin has excess capacity and receives a special order for 5,000 clocks for $24 each Calculate the contribution margin per unit Based on this, should Franklin accept the special order Contribution margin per unit Should Franklin accept the special order Required A Required B Prepare a contribution margin income statement for the special order FRANKLIN COMPANY Contribution Margin Income Statement

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Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35 percent markup on total cost  Based on annual production costs for 12,000 units of product, computations for the sales price per clock follow  Unit level costs Fixed costs Total cost (a) Markup (a x 0 35) Total sales (6) Sales price per unit (b 12,000) $240,000 80,000 320,000 112,000 $432,000 36 Required a  Franklin has excess capacity and receives a special order for 5,000 clocks for $24 each  Calculate the contribution margin per unit  Based on this, should Franklin accept the special order  b  Prepare a contribution margin income statement for the special order  Required A Required B Franklin has excess capacity and receives a special order for 5,000 clocks for $24 each  Calculate the contribution margin per unit  Based on this, should Franklin accept the special order  Contribution margin per unit Should Franklin accept the special order  Required A Required B Prepare a contribution margin income statement for the special order  FRANKLIN COMPANY Contribution Margin Income Statement

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Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35 percent markup on total cost. Based on annual

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