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Franklin Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot

Franklin Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Franklin does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow:

Cost Category Job A Job B
Contract price $ 807,000 $ 695,000
Unit-level materials 244,600 223,750
Unit-level labor 251,050 305,300
Unit-level overhead 18,200 12,700
Supervisors salary 114,870 114,870
Rental equipment costs 26,600 28,400
Depreciation on tools (zero market value) 21,000 21,000
Allocated portion of companywide facility-sustaining costs 10,700 9,500
Insurance cost for job 17,800 17,800

Required

Assume that Franklin has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept.

Assume that Job A is no longer available. Franklin's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B.

Assume that Franklin has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.)

Decision Job A Job B
Contract price
Unit-level materials
Unit-level labor
Unit-level overhead
Supervisors salary
Rental equipment costs
Depreciation on tools (zero market value)
Allocated portion of companywide facility-sustaining costs
Insurance cost for job
Contribution to profit (loss)
Recommend which job to accept?

Assume that Job A is no longer available. Franklin's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. (Negative amounts should be indicated by a minus sign.)

Decision Job B
Contract price
Unit-level materials
Unit-level labor
Unit-level overhead
Rental equipment costs
Depreciation on tools (zero market value)
Allocated portion of companywide facility-sustaining costs
Supervisors salary
Insurance cost for job
Contribution to profit (loss)
Recommend whether to accept or reject job B?

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