Norman Concrete Company pours concrete slabs for single-family dwellings. Wayne Construction Company, which operates outside Norman%u2019s normal sales territory, asks Norman to pour 30 slabs for Wayne%u2019s new development of homes. Norman has the capacity to build 300 slabs and is presently working on 250 of them. Wayne is willing to pay only $3,250 per slab. Norman estimates the cost of a typical job to include unit-level materials, $1,500; unit-level labor, $1,500; and an allocated portion of facility-level overhead, $500.Should Norman accept or reject the special order to pour 30 slabs for $3,250 each? Support your answer with appropriate computations.
- Sales Rvenue:
- cost of raw materials:
- cost of direct labor:
- contribution to profit: