Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Stuart’s normal sales territory, asks Stuart to pour 47 slabs for Lancing’s new development of homes. Stuart has the capacity to build 500 slabs and is presently working on 200 of them. Lancing is willing to pay only $2,510 per slab. Stuart estimates the cost of a typical job to include unit-level materials, $880; unit-level labor, $510; and an allocated portion of facility-level overhead, $1,200. Required Calculate the contribution to profit from the special order. Should Stuart accept or reject the special order to pour 47 slabs for $2,510 each?
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Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Compa...
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