Zachary Concrete Company pours concrete slabs for single - family dwellings. Lancing Construction Company, which operates outside
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Question:
Zachary Concrete Company pours concrete slabs for singlefamily dwellings. Lancing Construction Company, which operates outside Zacharys normal sales territory, asks Zachary to pour slabs for Lancings new development of homes. Zachary has the capacity to build slabs and is presently working on of them. Lancing is willing to pay only $ per slab. Zachary estimates the cost of a typical job to include unitlevel materials, $; unitlevel labor, $; and an allocated portion of facilitylevel overhead, $
Required
Calculate the contribution to profit from the special order. Should Zachary accept or reject the special order to pour slabs for $ each?
Contribution to profit
Should Zachary accept or reject the special order?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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