Vernon 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 12,000 units of product, computations for the sales price per clock follow. Unit-level costs Fixed costs Total cost (a) Markup (a x 0.20) Total sales (b) Sales price per unit (b 12,000) $240,000 60,000 300,000 60,000 $360,000 $ 30 Required a. Vernon has excess capacity and receives a special order for 6,000 clocks for $22 each. Calculate the contribution margin per unit. Based on this, should Vernon 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 Vernon has excess capacity and receives a special order for 6,000 clocks for $22 each. Calculate the contribution margin per unit. Based on this, should Vernon accept the special order? Contribution margin per unit Should Vernon accept the special order? Prepare a contribution margin income statement for the special order. VERNON COMPANY Contribution Margin Income Statement