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Accepting Business at a Special Price Forever Ready Company expects to operate at 85% of productive capacity during July. The total manufacturing costs for July
Accepting Business at a Special Price Forever Ready Company expects to operate at 85% of productive capacity during July. The total manufacturing costs for July for the production of 29,750 batteries are budgeted as follows: Direct materials $285,200 Direct labor 104,900 Variable factory overhead 29,375 Fixed factory overhead 59,000 Total manufacturing costs $478,475 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses. What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
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