60.1K

Verified Solution

Link Copied!

Benson Company, which produces and sells a small diaital clock, bases its pricing strategy on a 25 percent markup on totai cost. Based on annual production coste fa..... ct, computations for the sales price per clock follow. a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit: Based on this, should Benson accept the special order? b. Prepare a contribution margin income statement for the special order. Answer is not complete. Complete this question by entering your answers in the tabs below. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on fotal cost. Based on annual production costs for 10.000 . inite a... ct, computations for the sales price per clock follow. Required a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? b. Prepare a contribution margin income statement for the special order. Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement for the special order

Answer & Explanation Solved by verified expert

See Answer