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Munoz Company, which produces and sells a small digital clock, bases its pricing strategy on a 20 percent markup on total cost. Based on annual
Munoz 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 20,000 units of product, computations for the soles price per clock follow. Required a. Munoz has excess capoeity and recelves a special order for 7,000 clocks for $25 each. Calculate the contribution margin per unit. Bused on this, should Munoz accept the special order? b. Prepare a contribution margin income stotement for the special order. Complete this question by entering your answers in the tabs below. Munoz has excess capacity and recelves a special order for 7,000 clocks for $25 each. Calculate the contribution margin per unit. Based on this, should Munoz accept the special order? Munoz 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 20,000 units of product, computations for the sales price per clock follow. Required a. Munoz has excess capacity and recelves a special order for 7,000 clocks for $25 each. Calculate the contribution margin per unit. Based on this, should Munoz 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. Prepare a contribution margin income statement for the special order
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