Problem
Jordan Concrete Company pours concrete slabs for single- family dwellings. Lancing Construction Company, which operates outside Jordan's normal sales territory, ask Jordan to pour 52 slabs for Lancing's new development of homes. Jordan has the capacity to build 420 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,510 per slab. Jordan estimates the cost of a typical job to include unit-level materials, $850, unit-level labor, $580; and an allocated portion of facility-level overhead, $1,150. Calculate the contribution to profit from the special order. Should Jordan accept or reject the special order to pour 52 slabs for $2,510 each?