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Accepting Business at a Special Price Forever Ready Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May

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Accepting Business at a Special Price Forever Ready Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May for the production of 27,200 batteries are budoeted as follows: The company has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses. What is the unit cost below which Forever Ready Campany should not go in bidding on the government contract? Round your answer to two decimal places. per unit Toyota Motor Corporation (TM) uses target costing. Assume that Toyota marketing personnel estimate that the competitive selling price for the Carnry in the upcoming mod vear will need to be $27,000. Assume further that the Camry's total unit cost for the upcoming model year is estirated to be $22,500 and that Torota requires a 2044 prof maroin on selling price (which is equivalent to a 25% markap on total cost). a. What price will Toryota establish for the Camry for the tipcoming model vear? b. Since the estimated manufacturing cost the target cost, Toyota its total costs to maintain competitive pricing within its grafit objectives. Variable. Cost Method of Product Pricing Smart Stream Inc. uses the yariable cost method of applying the cost-plus approach to product pricing. The costs of producing and seling 10 , 000 ceil phones are as follows: Smart Stream pesires a profit equal to a 300ceturn on invested assets of $1,200,000. 6. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cell phones: b? Determine the varlable cost marhip percentage for cell phones. Round to two decimal places. c. Deternine the selling price of coll phones. If required, round to the nearest dollar. per cell phone

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