question archive Finch Concrete Company pours concrete slabs for single-family dwellings

Finch Concrete Company pours concrete slabs for single-family dwellings

Subject:AccountingPrice: Bought3

Finch Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Finch's normal sales territory, asks Finch to pour 45 slabs for Lancing's new development of homes. Finch has the capacity to build 350 slabs and is presently working on 230 of them. Lancing is willing to pay only $2,660 per slab. Finch estimates the cost of a typical job to include unit-level materials, $830; unit-level labor, $500; and an allocated portion of facility-level overhead, $1,390. Required Calculate the contribution to profit from the special order. Should Finch accept or reject the special order to pour 45 slabs for $2,660 each? Contribution to profit Should Finch accept or reject the special order?

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