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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 $465,300
Direct labor 171,100
Variable factory overhead 47,850
Fixed factory overhead 96,000
Total manufacturing costs $780,250

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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