Question: Problem: Module 6 Textbook Problem 4 Learning Objective: 6-2 Make appropriate special order decisions Zachary Company, which produces and sells a small digital clock, bases

 Problem: Module 6 Textbook Problem 4 Learning Objective: 6-2 Make appropriate

Problem: Module 6 Textbook Problem 4 Learning Objective: 6-2 Make appropriate special order decisions Zachary 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 16,000 units of product, computations for the sales price per clock follow. Required a. Zachary has excess capacity and receives a special order for 5,000 clocks for $24 each. Calculate the contribution margin per unit. Based on this, should Zachary 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

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