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Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual

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Benson 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 10,000 units of product, computations for the sales price per clock follow: $150,000 50,000 Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) 200,000 50,000 $250,000 25 Sales price per unit (b 10,000) Required a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each Calculate the contribution margin per unit. Based on this, should Benson 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 Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contri bution margin per unit. Based on this, should Benson accept the special order? Show less Contribution margin per unit Should Benson accept the special order? Required A Required B Benson 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 10,000 units of product, computations for the sales price per clock follow: $150,000 50,000 200,000 Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) 50,000 $250,000 $ 25 Sales price per unit (b+ 10,000) Required a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 ea Calculate the contribution margin per unit. Based on this, should Benson 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. BENSON COMPANY Contribution Margin Income Statement

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