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Adams Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Adamss normal sales territory, asks Adams to pour 50 slabs
Adams Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Adamss normal sales territory, asks Adams to pour 50 slabs for Lancings new development of homes. Adams has the capacity to build 360 slabs and is presently working on 210 of them. Lancing is willing to pay only $2,660 per slab. Adams estimates the cost of a typical job to include unit-level materials, $960; unit-level labor, $490; and an allocated portion of facility-level overhead, $1,300.
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Calculate the contribution to profit from the special order. Should Adams accept or reject the special order to pour 50 slabs for $2,660 each?
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