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Bennett Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot
Bennett Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Bennett does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Required: Calculate the contribution to profit from Job A and Job B. Assume that Bennett has decided to accept one of the two jobs. Recommend which job to accept? Assume that Job A is no longer available. Bennett choice is to accept or reject Job B alone. Calculate the contribution to profit from Job B. Based on your answer to requirement b-1, recommend whether to accept or reject Job B
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