Question
Adams Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Adamss normal sales territory, asks Adams to pour 47 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 47 slabs for Lancings new development of homes. Adams has the capacity to build 360 slabs and is presently working on 100 of them. Lancing is willing to pay only $2,590 per slab. Adams estimates the cost of a typical job to include unit-level materials, $850; unit-level labor, $550; and an allocated portion of facility-level overhead, $1,280.
Required
Calculate the contribution to profit from the special order. Should Adams accept or reject the special order to pour 47 slabs for $2,590 each?
Adams Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Adams's normal sales territory, asks Adams to pour 47 slabs for Lancing's new development of homes. Adams has the capacity to build 360 slabs and is presently working on 100 of them. Lancing is willing to pay only $2,590 per slab. Adams estimates the cost of a typical job to include unit-level materials, $850; unit-level labor, $550; and an allocated portion of facility-level overhead, $1,280. Required Calculate the contribution to profit from the special order. Should Adams accept or reject the special order to pour 47 slabs for $2,590 each? Contribution to profit Should Adams accept or reject the special order? AcceptStep by Step Solution
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