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

90.2K

Verified Solution

Question

Accounting

Rundle Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Rundles normal sales territory, asks Rundle to pour 42 slabs for Lancings new development of homes. Rundle has the capacity to build 400 slabs and is presently working on 220 of them. Lancing is willing to pay only $2,600 per slab. Rundle estimates the cost of a typical job to include unit-level materials, $940; unit-level labor, $520; and an allocated portion of facility-level overhead, $1,200.

Required

Calculate the contribution to profit from the special order. Should Rundle accept or reject the special order to pour 42 slabs for $2,600 each?

Rundle Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Rundle's normal sales territory, asks Rundle to pour 42 slabs for Lancing's new development of homes. Rundle has the capacity to build 400 slabs and is presently working on 220 of them. Lancing is willing to pay only $2,600 per slab. Rundle estimates the cost of a typical job to include unit-level materials, \$940; unit-level labor, \$520; and an allocated portion of facility-level overhead, \$1,200. Required Calculate the contribution to profit from the special order. Should Rundle accept or reject the special order to pour 42 slabs for $2,600 each

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member