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Preston Concrete is a major supplier of concrote to residential and commercial builders in the Pacific Northwest. The company's general pricing policy is to set

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Preston Concrete is a major supplier of concrote to residential and commercial builders in the Pacific Northwest. The company's general pricing policy is to set prices at $122 per cubic yard. Deliveries for 2018 were 390,000 cubic yards. Total costs were: Material costs Yard operation costs Administ ative costs $26,481,000 $5,8500 975,000 3,919,500 of the estimated total yard operation casts were variable, and al of the administrative casts were fixed. In addition to the costs above, estimated ixed delivery costs were s 215,00 for the year, and estimated variable del very costs were7.00 per mile and s36.00 per truck hour. The ate per mile reflects the act at more m es resu t in cre gasol and mantenance. ate per truck hour reflects the ctthittu s that are waiting at a jobsite are kept running (so the concrete mix won't solicify), and drivers continue to ge: paid during that time Near the end of 2018 Fairview Construction Company asked for a delivery or 5,100 cubic yards of concrete but was un lling to pay the regular price: it was only willing to pay $87 per cubic yard. Preston estimated that the job would require 7,200 miles of driving and 290 truck hours. The housing market in the Pacific Northwest had slowed during recernt mornths, leaving Preston with enugh capacity to fill the order, but its sales manager was reluctant to commit to sucn a reduced price REQUIRED If Preston accepted the offer, what would the profit or loss be (enter a loss as a negative number)

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