Question
Finch Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Finch's normal sales territory, asks Finch to pour 51 slabs
Finch Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Finch's normal sales territory, asks Finch to pour 51 slabs for Lancing's new development of homes. Finch has the capacity to build 350 slabs and is presently working on 180 of them. Lancing is willing to pay only $2,640 per slab. Finch estimates the cost of a typical job to include unit-level materials, $830; unit-level labor, $530; and an allocated portion of facility-level overhead, $1,370.
Calculate the contribution to profit from the special order. Should Finch accept or reject the special order to pour 51 slabs for $2,640 each?
Contribution to profit
Should Finch accept or reject the special order?
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