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Rooney Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Rooney's normal sales territory, asks Rooney to pour 47 slabs
Rooney Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Rooney's normal sales territory, asks Rooney to pour 47 slabs for Lancing's new development of homes. Rooney has the capacity to build 390 slabs and is presently working on 230 of them. Lancing is willing to pay only $2,600 per slab. Rooney estimates the cost of a typical job to include unit-level materials, $990; unit-level labor, $520; and an allocated portion of facility-level overhead, $1,160. Required Calculate the contribution to profit from the special order. Should Rooney accept or reject the special order to pour 47 slabs for $2,600 each
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