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Packer Concrete Company pours concrete slabs for single-family dwellings. Wolff Construction Company, which operates outside Packer’s normal sales territory, asks Packer to pour 52 slabs for Wolff’s new development of homes. Packer has the capacity to build 440 slabs and is presently working on 110 of them. Wolff is willing to pay only $2,540 per slab. Packer estimates the cost of a typical job to include unit-level materials, $910; unit-level labor, $420; and an allocated portion of facility-level overhead, $790. Required Calculate the contribution to profit from the special order. Should Packer accept or reject the special order to pour 52 slabs for $2,540 each? Accept Reject

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92039999

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