Question - Stain Floors, Co. cleans and paints concrete floors for commercial customers. The company is currently operating at less than capacity with the equipment and employee idle at times. The company recently received an order from a potential customer outside the company's normal geographic service region for a price of $17,000. The size of the proposed job is 30,000 square feet. See below.
unit-level materials $0.26 p/sq ft
unit-level labor $0.33 p/sq ft
unit-level variable overhead $0.16 p/sq ft
facility-level overhead Allocated at $0.18 p/sq ft.
If the company accepts the special offer, how much will they earn or lose on the job?