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Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon's normal sales territory, asks Vernon to pour 44 slabs for Lancing's new development of homes. Vernon has the capacity to bulld 430 slabs and is presently working on 140 of them. Lancing is willing to pay only $2,610 per slab. Vernon estimates the cost of a typical job to include unit-level materials, $930; unit-level labor, $430; and an allocated portion of facility-level overhead, $1,310. Required Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order to pour 44 slabs for $2,610 each? Rundle Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Rundle produces and sells only 7,900 bikes each year. Due to the low volume of activity, Rundle is unable to obtain the economies of scale that larger producers achieve. For example, Rundle could buy the handlebars for $38 each: they cost $41 each to make. The following is a detailed breakdown of current production costs. After seeing these figures, Rundle's president remarked that it would be foolish for the company to continue to produce the handlebars at $41 each when it can buy them for $38 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion