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Rundle Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual
Rundle 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 (6) Sales price per unit (b + 15,000) $270,000 90,000 360,000 90,000 $450,000 $ 30 Required a. Rundle has excess capacity and receives a special order for 5,000 clocks for $20 each. Calculate the contribution margin per u Based on this, should Rundle 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 Rundle has excess capacity and receives a special order for 5,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Rundle accept the special order? Required a. Rundle has excess capacity and receives a special order for 5,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Rundle 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 Rundle has excess capacity and receives a special order for 5,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Rundle accept the special order? Contribution margin per unit Should Rundle accept the special order? Required A Required B > Required a. Rundle has excess capacity and receives a special order for 5,000 clocks for $20 each. Calculate the contribution margin per unit. Based on this, should Rundle 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. RUNDLE COMPANY Contribution Margin Income Statement
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