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Exercise 13-6A (Algo) Special order decision LO 13-2 Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon's normal
Exercise 13-6A (Algo) Special order decision LO 13-2 Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon's normal sales territory, asks Vernon to pour 41 slabs for Lancing's new development of homes. Vernon has the capacity to build 310 slabs and is presently working on 130 of them. Lancing is willing to pay only $2,620 per slab. Vernon estimates the cost of a typical job to include unit-level materials, $890; unit-level labor, $500; and an allocated portion of facility-level overhead, $1,320. Required Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order to pour 41 slabs for $2,620 each
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