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Munoz Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Munoz's normal sales territory, asks Munoz to pour 53 slabs
Munoz Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Munoz's normal sales territory, asks Munoz to pour 53 slabs for Lancing's new development of homes. Munoz has the capacity to build 350 slabs and is presently working on 200 of them. Lancing is willing to pay only $2,660 per slab. Munoz estimates the cost of a typical job to include unit-level materials, $980; unit-level labor, $530; and an allocated portion of facility-level overhead, $1,210. Required Calculate the contribution to profit from the special order. Should Munoz accept or reject the special order to pour 53 slabs for $2,660 each? Contribution to profit Should Munoz accept or reject the special order
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