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Zachary Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Zacharys normal sales territory, asks Zachary to pour 46 slabs
Zachary Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Zacharys normal sales territory, asks Zachary to pour 46 slabs for Lancings new development of homes. Zachary has the capacity to build 370 slabs and is presently working on 250 of them. Lancing is willing to pay only $2,600 per slab. Zachary estimates the cost of a typical job to include unit-level materials, $820; unit-level labor, $560; and an allocated portion of facility-level overhead, $1,290. Required Calculate the contribution to profit from the special order. Should Zachary accept or reject the special order to pour 46 slabs for $2,600 each
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