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Exercise 6-9A (Static) Using the contribution margin approach for a special order decision LO 6-2 Hensely Company, which produces and sells a small digital clock,
Exercise 6-9A (Static) Using the contribution margin approach for a special order decision LO 6-2 Hensely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 perce narkup on total cost. Based on annual production costs for 25,000 units of product, computations for the ales price per clock follow. Required . Hensely has excess capacity and receives a special order for 8,000 clocks for $12 each. Calculate the contribution margin per unit. Based on this, should Hensely accept the special order? . Prepare a contribution margin income statement for the special order
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