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Exercise 1 3 - 6 A ( Static ) Special order decision LO 1 3 - 2 Visburg Concrete Company pours concrete slabs for single
Exercise A Static Special order decision LO
Visburg Concrete Company pours concrete slabs for singlefamily dwellings. Lancing
Construction Company, which operates outside Visburg's normal sales territory, asks Visburg to
pour slabs for Lancing's new development of homes. Visburg has the capacity to build
slabs and is presently working on of them. Lancing is willing to pay only $ per slab.
Visburg estimates the cost of a typical job to include unitlevel materials, $; unitlevel labor,
$; and an allocated portion of facilitylevel overhead, $
Required
Calculate the contribution to profit from the special order. Should Visburg accept or reject the
special order to pour slabs for $ each?
Contribution to profit
Should Visburg accept or reject the special order?
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