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Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packer's normal sales territory, asks Packer to pour 43 slabs
Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packer's normal sales territory, asks Packer to pour 43 slabs for Wolff's new development of homes. Packer has the capacity to build 480 slabs and is presently working on 130 of them. Wolff is willing to pay only $2.690 per slab. Packer estimates the cost of a typical job to include unit-level materials. $960; unit-level labor. $560; and an allocated portion of facility-level overhead, $730. Required Calculate the contribution to profit from the special order. Should Packer accept or reject the special order to pour 43 slabs for $2,690 each? Accept Reject
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