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Perez Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Perez's normal sales territory, asks Perez to pour 47
Perez Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Perez's normal sales territory, asks Perez to pour 47 slabs for Lancing's new development of homes. Perez has the capacity to build 430 slabs and is presently working on 140 of them. Lancing is willing to pay only $2,640 per slab. Perez estimates the cost of a typical job to include unit-level materials, $820; unit-level labor, $470; and an allocated portion of facility-level overhead, $1,400. Required Calculate the contribution to profit from the special order. Should Perez accept or reject the special order to pour 47 slabs for $2,640 each? Contribution to profit Should Perez accept or reject the special order?
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