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?

Prepare a contribution margin income statement for the special order.Homework $($algo$)$ LO $6-1,6-2,6-3,6-4,6-5$ i$)$

saved

$4$

Vernon Company, which produces and sells a small digltal clock, bases its pricing strategy on a $20$ percent markup on total cost. Based on annual production costs for $12,000$ units of product, computatlons for the sales price per clock follow.

$2\mathrm{.}22$ points

Skipped

References

Unit$-$level costs Fixed oosts Total oost $($a$)$ rarkup $($a $0\mathrm{.}20)$ Total sales $($b$)$ sales price per unit $(b12,600)$

Required

a$.$ Vernon has excess capaclty and recelves a speclal order for $6\mathrm{.}000$ clocks for $$22$ each. Calculate the contrlbutlon margin per unlt. Based on thls$,$ should Vernon accept the speclal order?

b$.$ Prepare a contribution margin Income statement for the speclal 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?

$\backslash$table$[[$Contribution margin per unit$],[$Should Vernon accept the special order?$]]$

Required $4$

Required B