Perez Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Perezs normal sales territory, asks Perez to pour 53 slabs for Lancings new development of homes. Perez has the capacity to build 420 slabs and is presently working on 120 of them. Lancing is willing to pay only $2,630 per slab. Perez estimates the cost of a typical job to include unit-level materials, $850; unit-level labor, $420; and an allocated portion of facility-level overhead, $1,440.

Required

Calculate the contribution to profit from the special order. Should Perez accept or reject the special order to pour 53 slabs for $2,630 each?

Contribution to profit Should Perez accept or reject the special order?