The Funeral Home Clock

Yesterday I was working @ the caffiene addiction shop and I've noticed this before, but never has a costumer reacted to it in this manner. Behind the counter, hanging high on the wall is a clock that tells the time...however, the clock was given to the shop I'm assuming, because there in it's center lies the words " McDougal Funeral Home." Now, I'm not sure why anyone would actually buy a clock with that decorated on it, so I'm hoping that it was donated. Either way, it's a bit morbid and creepy. On the other hand, it does paint a strange image of time ticking away. YIKES!
Okay, so back to the story. Some random dude came in to get some coffee beans and a cup of joe. Before leaving he made the comment that the clock was advertising a funeral home and then went on to describe how his grandmother had just past away and how the funeral home was way too business like. Even to the point of asking how everything was going (service/business wise) as they lowered the casket into it's grave at the cementary! I, ofcourse, was appalled at this news. Nonetheless the gentleman ended up leaving with the comment of apologizing for being morbid, with which I, in response to the comment, put my foot completely in my mouth and mumbled something that sounded like "that's okay, we're morbid here!" Whatever that means. But seriously, how was I supposed to handle that topic of conversation? I was caught between a rock and an oncoming 18 wheeler...hypothetically ofcourse. What would you have said in that situation?