4
points
build
Walton Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside
Walton's normal sales territory, asks Walton to pour 44 slabs for Lancing's new new development of homes. Walton has the capacity to
400 slabs and is presently working on 170 of them. Lancing is willing to pay only $2,510 per slab. Walton estimates the cost of a typical
job to include unit-level materials, $910; unit-level labor, $590; and an allocated portion of facility-level overhead, $1,080.
Required
Calculate the contribution to profit from the special order. Should Walton accept or reject the special order to pour 44 slabs for $2,510
each?
Bock
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Contribution to profit
Should Walton accept or reject the special order?