(Solved by Humans)-Problem 13-22 Context-sensitive relevance Chapman Construction Company is a building contractor...

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Problem 13-22       Context-sensitive relevance Chapman 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 Chapman does not have the necessary la- bor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is ac- cepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow.     Cost Category Contract price Job A $800,000 Job B $700,000 Unit-level materials 243,700 223,450 Unit-level labor 249,150 305,000 Unit-level  overhead 18,000 12,600 Supervisor’s  salary 116,670 116,670 Rental equipment costs 24,900 27,300 Depreciation on tools (zero market value) 19,900 19,900 Allocated portion of companywide facility-sustaining costs 10,400 8,600 Insurance cost for job 18,200 18,200     Required a.     Assume that Chapman has decided to accept one of the two jobs. Identify the information relevant to selecting one job versus the other. Recommend which job to accept and support your answer with appropriate computations. b.     Assume that Job A is no longer available. Chapman’s choice is to accept or reject Job B alone. Identify the information relevant to this decision. Recommend whether to accept or reject Job B. Support your answer with appropriate computations.