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

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.