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Vernon Concrete Company pours concrete slabs for single - family dwellings. Lancing Construction Company, which operates outside Vernon s normal sales territory, asks Vernon to
Vernon Concrete Company pours concrete slabs for singlefamily dwellings. Lancing Construction Company, which operates outside Vernons normal sales territory, asks Vernon to pour slabs for Lancings new development of homes. Vernon has the capacity to build slabs and is presently working on of them. Lancing is willing to pay only $ per slab. Vernon estimates the cost of a typical job to include unitlevel materials, $; unitlevel labor, $; and an allocated portion of facilitylevel overhead, $ Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order to pour slabs for $ each?
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