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ibson 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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ibson 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 x 0.25) Total sales (b) Sales price per unit (b + 12,000) $276,000 60,000 336,000 84,000 $420,000 $35S Required a. Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per u 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. Reauired 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?

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