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Elsea 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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Elsea 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 25,000 units of product, computations for the sales price per clock follow. Required: a-1. Elsea has excess capacity and receives a special order for 8,000 clocks for $10 each. Calculate the contribution margin per unit from the special order. (Round your answer to 2 decimal places.)

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