Accepting Business at a Special Price

Power Serve Company expects to operate at 85% of productive capacity during July. The total manufacturing costs for July for the production of 32,300 batteries are budgeted as follows:

Direct materials	$516,200
Direct labor	189,800
Variable factory overhead	53,050
Fixed factory overhead	106,000
Total manufacturing costs	$865,050

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 Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places. $fill in the blank 1 per unit