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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 49 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 49 slabs for Wolffs new development of homes. Packer has the capacity to build 470 slabs and is presently working on 170 of them. Wolff is willing to pay only $2,530 per slab. Packer estimates the cost of a typical job to include unit-level materials, $830; unit-level labor, $530; and an allocated portion of facility-level overhead

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