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Walton Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Walton's normal sales territory, asks Walton to pour 52
Walton Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Walton's normal sales territory, asks Walton to pour 52 slabs for Lancing's new development of homes. Walton has the capacity to build 430 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,540 per slab. Walton estimates the cost of a typical job to include unit-level materials, $1,000; unit-level labor, $490; and an allocated portion of facility-level overhead, $1,110. Required Calculate the contribution to profit from the special order. Should Walton accept or reject the special order to pour 52 slabs for $2,540 each? Contribution to profit Should Walton accept or reject the special order?
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