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Franklin Concrete Company pours concrete slabs for single-family dwelings. Lancing Construction Company, which operates outside Franklin's normal sales territory, asks Franklin to pour 49 slabs
Franklin Concrete Company pours concrete slabs for single-family dwelings. Lancing Construction Company, which operates outside Franklin's normal sales territory, asks Franklin to pour 49 slabs for Lancing's new development of homes. Franklin has the capacity to build 360 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,630 per slab. Franklin estimates the cost of a typical job to include unit-level materials, $940; unit-level labor, $580; and an allocated portion of facility-level overhead, $1,170. Required Calculate the contribution to profit from the special order. Should Franklin accept or reject the special order to pour 49 slabs for $2,630 each? Contribution to profit Should Franklin accept or reject the special order
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