Baird Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Bairds normal sales territory, asks Baird to pour 42 slabs for Lancings new development of homes. Baird has the capacity to build 380 slabs and is presently working on 130 of them. Lancing is willing to pay only $2,530 per slab. Baird estimates the cost of a typical job to include unit-level materials, $910; unit-level labor, $400; and an allocated portion of facility-level overhead, $1,270.

Required

Calculate the contribution to profit from the special order. Should Baird accept or reject the special order to pour 42 slabs for $2,530 each?

Contribution to profit Should Baird accept or reject the special order