Exercise 6-6A (Algo) Special order decision LO 6-2 Baird Concrete Company pours concrete slabs for single-family...
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Exercise 6-6A (Algo) Special order decision LO 6-2 Baird Concrete Company pours concrete slabs for single-family dwellings, Lancing Construction Company, which operates outside Baird's normal sales territory, asks Baird to pour 41 slabs for Lancing's new development of homes. Baird has the capacity to build 310 slabs and is presently working on 170 of them, Lancing is willing to pay only $2,590 per slab. Baird estimates the cost of a typical job to include unit-level materials, $900; unit-level labor, $440; and an allocated portion of facility-level overhead, $1,320. Required Calculate the contribution to profit from the special order. Should Baird accept or reject the special order to pour 41 slabs for $2,590 each? Contribution to profit Should Baird accept or reject the special order? Exercise 6-6A (Algo) Special order decision LO 6-2 Baird Concrete Company pours concrete slabs for single-family dwellings, Lancing Construction Company, which operates outside Baird's normal sales territory, asks Baird to pour 41 slabs for Lancing's new development of homes. Baird has the capacity to build 310 slabs and is presently working on 170 of them, Lancing is willing to pay only $2,590 per slab. Baird estimates the cost of a typical job to include unit-level materials, $900; unit-level labor, $440; and an allocated portion of facility-level overhead, $1,320. Required Calculate the contribution to profit from the special order. Should Baird accept or reject the special order to pour 41 slabs for $2,590 each? Contribution to profit Should Baird accept or reject the special order?
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