Prepare a contribution margin analysis and determine if he should keep the hens Exhibit 1. Arkansas Egg Company Cost and Production Information Arkansas Egg aimed to collect 26.6 dozen eggs from each hen over its productive laying cycle of 55 weeks. If that happened, based on the contract price, then AEC recovered the costs of bringing the bird to its productive cycle (about 40 cents/dozen) as well as fixed overhead (about 16 cents/dozen). The approximate contribution margin during this time was 7%. After the breakeven point, the only costs incurred were the variable production costs. Exhibit 2. Trends in the Conventional Egg Market