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

Gibson Concrete Company pours concrete slabs for single$-$family dwellings. Lancing Construction Company, which operates outside

Gibson's normal sales territory, asks Gibson to pour $51$ slabs for Lancing's new development of homes. Gibson has the capacity to

build $350$ slabs and is presently working on $200$ of them. Lancing is willing to pay only $$2,550$ per slab. Gibson estimates the cost of a

typical job to include unit$-$level materials, $$800$; unit$-$level labor, $$450$; and an allocated portion of facility$-$level overhead, $$1,380.$

Required

Calculate the contribution to profit from the special order. Should Gibson accept or reject the special order to pour $51$ slabs for $$2,550$

each?

Contribution to profit

Should Gibson accept or reject the special order?