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Campbell Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Campbell's normal sales territory, asks Campbell to pour 42
Campbell Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Campbell's normal sales territory, asks Campbell to pour 42 slabs for Lancing's new development of homes. Campbell has the capacity to build 470 slabs and is presently working on 170 of them. Lancing is willing to pay only $2,620 per slab. Campbell estimates the cost of a typical job to include unit-level materials, $840; unit-level labor, $570; and an allocated portion of facility-level overhead, $1,260. Required Calculate the contribution to profit from the special order. Should Campbell accept or reject the special order to pour 42 slabs for $2,620 each? Contribution to profit Should Campbell accept or reject the special order?
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