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Exercise 13-6A (Algo) Special order decision LO 13-2 Stuart Concrete Company pours concrete slabs for single fomily dwellings. Lancing Construction Company, which operates outside Stuart's
Exercise 13-6A (Algo) Special order decision LO 13-2 Stuart Concrete Company pours concrete slabs for single fomily dwellings. Lancing Construction Company, which operates outside Stuart's normal sales territory, asks Stuart to pour 40 slabs for Lancing's new developenent of homes. Stuart has the capscity to bulld 350 slabs and is presently working on 210 of them. Lancing is willing to pay only $2,690 per slab. Stuart estimates the cost of a typical job to include unit Level materials, $920, unit-level labor, $520, and an allocated porion of facility level overhead, $1.330. Required Calculate the contribution to profit from the special order. Should Stuart accept of reject the special order to pour 40 slabs for $2.690 each
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