Question

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 47 slabs for Wolff's new development of homes. Packer has the capacity to build 450 slabs and is presently working on 140 of them. Wolff is willing to pay only $2,630 per slab. Packer estimates the cost of a typical job to include unit-level materials, $820; unit-level labor, $570; and an allocated portion of facility-level overhead, $720. Required Calculate the contribution to profit from the special order. Contribution to profit Should Packer accept or reject the special order to pour 47 slabs for $2,630 each? O Accept O Reject

Answer 1

Answer calculaton of contvlbution to pwfit (4) 123,610 sales evenue ($2630xuskbs) Pelaveut cest less 3&suo) cost of malenial 820x u) 267 90) en cost o labour 459ox 4a) Conti buttoy to pwht కం > tte relaveut cost, te atept te order T Yelevant revenue thi velavent Co Ten veject e onder I nlavent vevenue 123/6(0 velavent vevenue = 3s4o 26790 Yelavut co S- 65,330. 12.3610 6330, the order hould be acceptd