Exercise $13-6$A $($Static$)$ Special order decision LO $13-2$

Visburg Concrete Company pours concrete slabs for single$-$family dwellings. Lancing

Construction Company, which operates outside Visburg's normal sales territory, asks Visburg to

pour $40$ slabs for Lancing's new development of homes. Visburg has the capacity to build $300$

slabs and is presently working on $250$ of them. Lancing is willing to pay only $$3,300$ per slab.

Visburg estimates the cost of a typical job to include unit$-$level materials, $$1,440$; unit$-$level labor,

$$720$; and an allocated portion of facility$-$level overhead, $$1,200.$

Required

Calculate the contribution to profit from the special order. Should Visburg accept or reject the

special order to pour $40$ slabs for $$3,300$ each?

Contribution to profit

Should Visburg accept or reject the special order?