Reduced housing starts and demand for concrete

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Reference no: EM131902541

Overview Construction has said it will sign a firm contract for above order only if the price is $115 per cubic yard (delivered). A sharp increase in land prices has reduced housing starts and the demand for concrete. Required: (a) Should Puget Concrete accept the order? (Explain with incremental profit analysis). And (b) describe non-cost factors that, while hard to quantify, should be taken into account in the decision.

Reference no: EM131902541

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Reduced housing starts and demand for concrete : A sharp increase in land prices has reduced housing starts and the demand for concrete.

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