Exercise $13-9$A $($Static$)$ Using the contribution margin approach

for a special order decision LO $13-2$

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.

Required

a$.$ 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?

b$.$ Prepare a contribution margin income statement for the special order.

Complete this question by entering your answers in the tabs below.

Hensely has excess capacity and receives a special order for $8,000$ clocks for $$12$ each

unit. Based on this, should Hensely accept the special order?

Note: Round your answer to $2$ decimal places.

Contribution margin per unit

Should Hensely accept the special order?