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Accepting Business at a Special Price Palomar Battery Company expects to operate at 75% of full capacity during April. The total manufacturing costs for April
Accepting Business at a Special Price Palomar Battery Company expects to operate at 75% of full capacity during April. The total manufacturing costs for April for the production of 60,000 batteries are budgeted as follows: The company has an opportunity to submit a bid for 17,500 botteries to be delivered by April 30 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during April or increase the seling or administrative expenses. Round your answers to the nearest cent. a. What is the April budgeted cost per battery for the production of 60,000 batteries? per battery b. What is the unit cost below. which Palomar Battery Company should not go in bidding on the government contract? per unt
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