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Benson Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Bensons normal sales territory, asks Benson to pour 40 slabs

Benson Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Bensons normal sales territory, asks Benson to pour 40 slabs for Lancings new development of homes. Benson has the capacity to build 400 slabs and is presently working on 100 of them. Lancing is willing to pay only $2,670 per slab. Benson estimates the cost of a typical job to include unit-level materials, $950; unit-level labor, $590; and an allocated portion of facility-level overhead, $1,210.

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