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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 37,400 batteries are budgeted as follows: Direct materials $607,800 Direct labor 223,500 Variable factory overhead 62,560 Fixed factory overhead 125,000 Total manufacturing costs $1,018,860 The company has an opportunity to submit a bid for 3,000 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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