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Exercise 13-6A (Algo) Special order decision LO 13-2 Campbell Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Campbell's normal
Exercise 13-6A (Algo) Special order decision LO 13-2 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 49 slabs for Lancing's new development of homes. Campbell has the capacity to build 440 slabs and is presently working on 220 of them. Lancing is willing to pay only $2,500 per slab. Campbell estimates the cost of a typical job to include unit-level materials, $880; unit-level labor, $500; and an allocated portion of facility-level overhead, $1,180. Required Calculate the contribution to profit from the special order. Should Campbell accept or reject the special order to pour 49 slabs for $2,500 each
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