Calculate the contribution to profit from the special order

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Reference no: EM133433771

Question: Zachary Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Zachary's normal sales territory, asks Zachary to pour 53 slabs for Lancing's new development of homes. Zachary has the capacity to build 490 slabs and is presently working on 240 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, $960; unit-level labor, $410; and an allocated portion of facility-level overhead, $1,300

Required Calculate the contribution to profit from the special order. Should Zachary accept or reject the special order to pour 53 slabs for $2,600 each? Contribution to profit Should Zachary accept or reject the special order?

Reference no: EM133433771

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