Solomon 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 10,000 units of product, computations for the sales price per clock follow: Unit-level costs $130,000 Fixed costs Total cost (a) 70,000 200,000 40,000 Markup (a 0.20) Total sales (b) $240,000 Sales price per unit (b 10,000) 24 Required a. Solomon has excess capacity and receives a special order for 8,000 clocks for $18 each. Calculate the contribution margin per unit Based on this, should Solomon 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 Solomon has excess capacity and receives a special order for 8,000 clocks for $18 each. Calculate the contribution margin per unit. Based on this, should Solomon accept the special order? Contribution margin per unit Should Solomon accept the special order? Required B eurodA Unit-level costs $130,000 Fixed costs 70,000 Total cost (a) Markup (a * 0.20) Total sales (b) 200,000 40,000 $240,000 Sales price per unit (b + 10,000) 24 Required a. Solomon has excess capacity and receives a special order for 8,000 clocks for $18 each. Calculate the contribution margin per unit. Based on this, should Solomon 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. SOLOMON COMPANY Contribution Margin Income Statement Direct labor Direct materials Required Required A Fixed costs Incremental revenue Variable costs 1 of 5 Next>