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Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Stuart's normal sales territory, asks Stuart to pour 52 slabs
Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Stuart's normal sales territory, asks Stuart to pour 52 slabs for Lancing's new development of homes. Stuart has the capacity to build 400 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,660 per slab. Stuart estimates the cost of a typical job to include unit-level materials, $940; unit-level labor, $550; and an allocated portion of facility-level overhead, $1,210. Required Calculate the contribution to profit from the special order. Should Stuart accept or reject the special order to pour 52 slabs for $2,660 each
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