excercise chapter 6

contribution to profit?

should perez accept or reject the special order?

Check my work Exercise 6-6A (Algo) Special order decision LO 6-2 Perez Concrete Company pours concrete slabs for single-family dwellings, Lancing Construction Company, which operates outside Perez's normal sales territory, asks Perez to pour 54 slabs for Lancing's new development of homes. Perez has the capacity to build 360 slabs and is presently working on 110 of them. Lancing is willing to pay only $2,620 per slab. Perez estimates the cost of a typical job to include unit-level materials. $900; unit-level labor, $470; and an allocated portion of facility-level overhead, $1,310. Required Calculate the contribution to profit from the special order. Should Perez accept or reject the special order to pour 54 slabs for $2.620 each? Contribution to profit Should Perez accept or reject the special order?