Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packers normal sales territory, asks Packer to pour 48 slabs for Wolffs new development of homes. Packer has the capacity to build 340 slabs and is presently working on 110 of them. Wolff is willing to pay only $2,550 per slab. Packer estimates the cost of a typical job to include unit-level materials, $970; unit-level labor, $450; and an allocated portion of facility-level overhead, $760.

Required

Calculate the contribution to profit from the special order.

Should Packer accept or reject the special order to pour 48 slabs for $2,550 each?

multiple choice

Accept Correct

Reject