Question: Vernon Concrete Company pours concrete slabs for single - family dwellings. Lancing Construction Company, which operates outside Vernon s normal sales territory, asks Vernon to

Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernons normal sales territory, asks Vernon to pour 54 slabs for Lancings new development of homes. Vernon has the capacity to build 480 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,670 per slab. Vernon estimates the cost of a typical job to include unit-level materials, $990; unit-level labor, $590; and an allocated portion of facility-level overhead, $1,160. Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order to pour 54 slabs for $2,670 each?

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