Compute the contribution to profit from the special order

Assignment Help Accounting Basics

Reference no: EM131955970

Problem

Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packer's normal sales territory, asks Packer to pour 41 slabs for Wolff's new development of homes. Packer has the capacity to build 410 slabs and is presently working on 200 of them. Wolff is willing to pay only $2,670 per slab. Packer estimates the cost of a typical job to include unit-level materials, $930; unit-level labor, $490; and an allocated portion of facility-level overhead, $810.

Required:

a. Calculate the contribution to profit from the special order.

Reference no: EM131955970

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