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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 42 siabs
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 42 siabs for Lancing's new development of homes. Rooney has the capacity to bulld 340 slabs and is presently working on 170 of them. Lancing is willing to pay only $2.650 per slab. Rooney estimates the cost of a typical job to include unit-level materials, $810, unit-fevel labor, $530; and an allocated portion of facility-level overhead, $1,380 Required Calculate the contribution to profit from the special order. Should Rooney accept or reject the special order to pour 42 siabs for $2,650 each
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