LON-CAPA PROBLEM #5 x p c e pecialorderf05.problem?symb uploaded%2fmsu% Chenyan Sun v (student section: 001) Acc230, spring 2016 Survey of Accounting Concepts Messages Courses Help Logout Grades Contents Main Menu Notes Evaluate Feedback Print o Info Timer Course Contents PROBLEM #5 SPECIAL ORDER DECISION] This with a service rather than a product. But the concepts for determining the profit from the is a special order problem that deals from this customer be accepted or not? For special order remain the same. And the ultimate question still is: should the special offer As with almost of the analyses that guidance, use the example in the special lecture and the special order study problems. a we have done, determining what costs are variable and what costs are fixed is a critical part of the analysis Preston Concrete is a major supplier of concrete to residential and commercial builders in the Pacific Northwest. The company's general pricing policy set prices at $117 per cubic yard. Deliveries for 2015 were 410,000 cubic yards. Costs per cubic yard were: $69.10 Material costs $13.00 Yard operation costs $3.70 Administrative costs 26% of the estimated yard operation costs were fixed, and all of the administrative c were fixed. In addition to the costs above, estimated fixed delivery costs were $180,000 for the year, and estimated variable delivery costs were $6.00 per mile and $38,00 per truck hour. The rate per mile and maintenance. The rate per truck hour reflects the fact that trucks that are waiting at a reflects the fact that more miles result in more gas, o obsite are kept running (so the concrete mix won't solidify), and drivers continue to get paid during that time Near the end of 2015, Fairview Construction Company asked for a delivery of 4,700 cubic yards of concrete but was unwilling to pay the regular price lling to pay $88 per cubic yard. Preston estimated that the job would require 7,300 miles of driving and 210 truck hours. The housing t was only w market in the Pacific Northwest had slowed during recent months, leaving Preston with enough capacity to fill the order, but its sales manager was reluctant to commit to such a reduced price REQUIRED If Preston accepted the offer, what would the profit or loss have been (enter a loss as a negative number Submit Answe Tries 0/10 ead ther View NEW Fixed Cost Relevance Anonymous 1 Reply (wed Mar 16 O3:59:54 pm 2016 (EDT)