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Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon's normal sales territory, asks Vernon to pour 53 slabs
Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon's normal sales territory, asks Vernon to pour 53 slabs for Lancing's new development of homes. Vernon has the capacity to build 480 slabs and is presently working on 130 of them. Lancing is willing to pay only $2,550 per slab. Vernon estimates the cost of a typical job to include unit-level materials, $1,000; unit-level labor, $580; and an allocated portion of facility-level overhead, $1,020. Required Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order to pour 53 slabs for $2,550 each
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