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

Hensely 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. Unit-level costs $ 240,000 Fixed costs 60,000 Total cost (a) 300,000 Markup (a 0.25) 75,000 Total sales (b) $ 375,000 Sales price per unit (b 25,000) $ 15

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