Required Calculate the contribution to profit From the special order. Should Walton accept or reject the special order to pour 53 slabs for $2,600 each?

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Chapter10: Short-term Decision Making
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Walton Concrete Company pours
concrete slabs for single-family
dwellings. Lancing Construction
Company, which operates outside
Walton's normal sales territory,
asks Walton to pour 53 slabs for
Lancing's new development of
homes. Walton has the capacity to
build 420 slabs and is presently
working on 180 of them. Lancing
is willing to pay only $2,600 per
slab. Walton estimates the cost of
a typical job to include unit-level
materials, $910; unit-level labor,
$400; and an allocated portion of
facility-level overhead, $1,370.
Required
Calculate the contribution to profit
from the special order. Should
Walton accept or reject the
special order to pour 53 slabs for
$2,600 each?
Contribution to profit
Transcribed Image Text:Walton Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Walton's normal sales territory, asks Walton to pour 53 slabs for Lancing's new development of homes. Walton has the capacity to build 420 slabs and is presently working on 180 of them. Lancing is willing to pay only $2,600 per slab. Walton estimates the cost of a typical job to include unit-level materials, $910; unit-level labor, $400; and an allocated portion of facility-level overhead, $1,370. Required Calculate the contribution to profit from the special order. Should Walton accept or reject the special order to pour 53 slabs for $2,600 each? Contribution to profit
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