Thornton Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Thornton does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow.

Cost Category	Job A			Job B
Contract price	$	804,000		$	697,000
Unit-level materials		244,400			224,250
Unit-level labor		250,950			306,800
Unit-level overhead		18,300			13,200
Supervisors salary		114,770			114,770
Rental equipment costs		25,200			29,000
Depreciation on tools (zero market value)		20,100			20,100
Allocated portion of company-wide facility-sustaining costs		11,700			8,600
Insurance cost for job		16,700			16,700

Required

1. Assume that Thornton has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept.

2. Assume that Job A is no longer available. Thornton's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B.

Decision JobA Job B Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? Decision Job B Contract price Unit-level materials Unit-level labor Unit-level overhead Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Supervisor's salary Insurance cost for job Contribution to profit (loss) Recommend whether to accept or reject job B