Continent 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 Continent 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: Cost Category Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Job $840,000 249,000 268,000 39,000 69,000 24,500 22,000 10,900 16,800 Job B $790,000 219,000 318,000 33,000 69,000 28,500 22,000 8,900 16,800 Required a. Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept b. Assume that Job A is no longer avallable. Continent's cholce is to accept or reject Job Balone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Complete this question by entering your answers in the tabs below. Required A Required B Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus a. Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. b. Assume that Job A is no longer available. Continent's choice is to accept or reject Job Balone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Complete this question by entering your answers in the tabs below. Required A Required B Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. (Negative amounts should be indicated by a minus sign.) Decision Job Job B Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? a. Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. b. Assume that Job A is no longer available. Continent's choice is to accept or reject Job Balone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Complete this question by entering your answers in the tabs below. Required A Required to Assume that Job A is no longer available. Continent's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. (Negative amounts should be indicated by a minus sign.) Decision Job B Contract price Unit-level materials Unit-level labor Unit-level overhead Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Supervisor's salary Insurance cost for job Contribution to profit (los) Recommend whether to accept or reject job B
