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Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packers normal sales territory, asks Packer to pour 50 slabs
Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packers normal sales territory, asks Packer to pour 50 slabs for Wolffs new development of homes. Packer has the capacity to build 360 slabs and is presently working on 200 of them. Wolff is willing to pay only $2,610 per slab. Packer estimates the cost of a typical job to include unit-level materials, $910; unit-level labor, $540; and an allocated portion of facility-level overhead, $720.
a. | Calculate the contribution to profit from the special order. |
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