Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Stuarts normal sales territory, asks Stuart to pour 46 slabs for Lancings new development of homes. Stuart has the capacity to build 480 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,640 per slab. Stuart estimates the cost of a typical job to include unit-level materials, $960; unit-level labor, $440; and an allocated portion of facility-level overhead, $1,300.

Required

Calculate the contribution to profit from the special order. Should Stuart accept or reject the special order to pour 46 slabs for $2,640 each?

Contribution to profit Should Stuart accept or reject the special order