Question: Problem: Module 6 Textbook Problem 4 Learning Objective: 6-2 Make appropriate special order decisions Hensely Company, which produces and sells a small digital clock, bases
Problem: Module 6 Textbook Problem 4 Learning Objective: 6-2 Make appropriate special order decisions Hensely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on totai cost. Based on annual production costs for 17,000 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 $27 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
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