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Gibson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual

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Gibson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 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 * 0.25) , Total sales (b) Sales price per unit (b + 12,000) $276,000 60,000 336,000 84,000 $420,000 $ 35 Required a. Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit Based on this, should Gibson 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 Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit. Based on this, should Gibson accept the special order? Contribution margin per unit Should Gibson accept the special order? Required A Required B > Gibson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 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 * 0.25) . Total sales (b) Sales price per unit (b + 12,000) $276,000 60,000 336,000 84,000 $420,000 $ 35 Required a. Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit. Based on this, should Gibson 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. GIBSON COMPANY Contribution Margin Income Statement ( Required A

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