Norman concrete company pours concrete slabs for

Reference no: EM13609517

Norman Concrete Company pours concrete slabs for single-family dwellings. Wayne Construction Company, which operates outside Norman's normal sales territory, asks Norman to pour 40 slabs for Wayne's new developement of homes. Norman has the capacity to build 300 slabs and is presently working on 250 of them. Wayne is willing to pay only $2500 per slab. Norman estimates the cost of a typical job to include unit-level materials. $1000; unit level labor, $600; and an allocated portion of facility-level over-head, $700.

Required: Should Norman accept or reject the special order to pour 40 slabs for $2500 each? support your answer with appropriate computations.

Reference no: EM13609517

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