Problem: Module 6 Textbook Problem 4 Learning Objective: 6-2 Make appropriate special order decisions Fanning 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 15,000 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) $285,000 75,000 360,000 90,000 $450,000 Sales price per unit (b 15,000) $ 30 Required a. Fanning has excess capacity and receives a special order for 9,000 clocks for $23 each. Calculate the contribution margin per unit. Based on this, should Fanning 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 Fanning has excess capacity and receives a special order for 9,000 clocks for $23 each. Calculate the contribution margin per unit. Based on this, should Fanning accept the special order? Contribution margin per unit Should Fanning accept the special order? Prepare a contribution margin income statement for the special order. FANNING COMPANY Contribution Margin Income Statement