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Franklin Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Franklin's normal sales territory, asks Franklin to pour 48
Franklin Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Franklin's normal sales territory, asks Franklin to pour 48 slabs for Lancing's new development of homes. Franklin has the capacity to build 350 slabs and is presently working on 240 of them. Lancing is willing to pay only $2.660 per slab. Franklin estimates the cost of a typical job to include unit-level materials, $840; unit-level labor, $470; and an allocated portion of facility-level overhead. $1,400. Required Calculate the contribution to profit from the special order. Should Franklin accept or reject the special order to pour 48 slabs for $2,660 each? Contribution to profit Should Franklin accept or reject the special order?
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