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Fanning Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Fanning's normal sales territory, asks Fanning to pour 45 slabs
Fanning Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Fanning's normal sales territory, asks Fanning to pour 45 slabs for Lancing's new development of homes. Fanning has the capacity to build 410 slabs and is presently working on 120 of them. Lancing is willing to pay only $2,590 per slab. Fanning estimates the cost of a typical job to include unit-level materials, $850; unit-level labor, $480; and an allocated portion of facility-level overhead, $1,320. Required Calculate the contribution to profit from the special order. Should Fanning accept or reject the special order to pour 45 slabs for $2,590 each
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