Managerial Accounting: E13-4 Huey Concrete Company pours concrete slabs
Managerial Accounting E13-4 Huey Concrete Company pours concrete slabs for single-family dwellings. Tudor Construction Company, which operates outside Huey's normal sales territory, asks Huey to pour 40 slabs for Tudor's new development of homes. Huey has the capacity to build 300 slabs and is presently working on 250 of them. Tudor is willing to pay only $2,250 per slab. Huey estimates the cost of a typical job to include unit-level materials, $1,000; unit-level labor, $500; and an allocated portion of facility-level overhead, $700.Required: Should Huey accept or reject the special order to pour 40 slabs for $2,250 each? Support your answer with appropriate computations.