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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 Vemon to pour 48 slabs
Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon's normal sales territory, asks Vemon to pour 48 slabs for Lancing's new development of homes. Vernon has the capacity to build 340 slabs and is presently working on 220 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, $900; unit-level labor. $410; and an allocated portion of facility-level overhead, $1,290. Required Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order to pour 48 slabs for $2,550 each
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