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please view the attachment to answer the following question Preston Concrete is a major supplier of concrete to residential and commercial builders in the Pacic
please view the attachment to answer the following question
Preston Concrete is a major supplier of concrete to residential and commercial builders in the Pacic Northwest. The company's general pricing policy is to set prices at $118 per cubic yard. Deliveries for 2015 were 410,000 cubic yards. Total costs were: Material costs | $21,197,000 Yard operation costs I $6,560,000 Administrative costs | $943,000 $2,230,400 of the estimated yard operation costs were fixed, and all of the administrative costs were xed. In addition to the costs above, estimated fixed delivery costs were $220,000 for the year, and estimated variable delivery costs were $9.00 per mile and $43.50 per truck hour. The rate per mile reects the fact that more miles result in more gas, oil, and maintenance. The rate per truck hour reflects the fact that trucks that are waiting at a jobsite are kept running (so the concrete mix won't solidify), and drivers continue to get paid during that time. Near the end of 2015, Fairview Construction Company asked for a delivery of 5,400 cubic yards of concrete but was unwilling to pay the regular price; it was only willing to pay $89 per cubic yard. Preston estimated that the job would require 7,100 miles of driving and 210 truck hours. The housing market in the Pacic Northwest had slowed during recent months, leaving Preston with enough capacity to fill the order, but its sales manager was reluctant to commit to such a reduced price. REQUIRED If Preston accepted the offer, what would the prot or loss have been (enter a loss as a negative number)Step by Step Solution
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