Business, 14.12.2019 06:31 sophiat17

Elsea 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 $ 190,000 fixed costs 50,000 total cost (a) 240,000 markup (a × 0.25) 60,000 total sales (b) $ 300,000 sales price per unit (b ÷ 25,000) $ 12 required a-1. elsea has excess capacity and receives a special order for 8,000 clocks for $10 each. calculate the contribution margin per unit. (round your answer to 2 decimal places.)

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Elsea company, which produces and sells a small digital clock, bases its pricing strategy on a 25 pe...

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