Recommend whether to accept or reject job b

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Reference no: EM133925939

Question: Context-sensitive relevance LO 6-1 Benson Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Benson does not have the necessary labor force for both jobs.

Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Job A Job B Contract price $ 816,000 $ 696,000 Unit-level materials 243,800 225,250 Unit-level labor 249,450 305,800 Unit-level overhead 18,700 12,700 Supervisor's salary 115,770 115,770 Rental equipment costs 25,200 28,300 Depreciation on tools (zero market value) 20,100 20,100 Allocated portion of companywide facility-sustaining costs 10,600 9,600 Insurance cost for job 17,200 17,200 Required Assume that Benson has decided to accept one of the two jobs. Get expert-level assistance in any subject with our assignment help services.

Fill in the information relevant to selecting one job over the other. Recommend which job to accept. Assume that Job A is no longer available. Benson's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B.

Reference no: EM133925939

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