HW 13 Q 3

Thornton 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 15,000 units of product, computations for the sales price per clock follow. Required a. Thornton has excess capacity and recelves a special order for 5,000 clocks for $23 each. Calculate the contribution margin per unit. Based on this, should Thornton 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. Complete this question by entering your answers in the tabs below. Thornton has excess capacity and receives a special order for 5,000 clocks for $23 each. Calculate the contribution margin unit. Based on this, should Thornton accept the special order? Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement for the special order