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 Job A Job B 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 $800,000 $750,000 250,000 220,000 310,000 30,000 70,000 29,000 19,900 8,600 18,200 260,000 40,000 70,000 26,000 19,900 10,400 18,200 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 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 X) Answer is not complete Complete this question by entering your answers in the tabs belovw 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. (Negative amounts should be indicated by a minus sign.) Decision Job A Job B 800,000750,000 (250,000)(220,000) 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 (260,000)(310,000) (40,000) (30,000) 70,000 (70,000) * (26,000) (29,000) (19,900) 10,400 (8,600) 18,200 (18,200) $294,000 $ 91,000 Job A 19,900 costs Insurance cost for jotb Contribution to profit (loss) Recommend which job to accept? Answer is not complete Complete this question by entering your answers in the tabs below Required A Reqired B Assume that Job A is no longer available. Continent's choice is to accept or reject Job B alone. F amounts should be indicated by a minus sign.) in the information relevant to this decision. (Negative Decision Job B Contract price Unit-level material:s 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 0 Contribution to profit (loss) Recommend whether to accept or reject job B
