1. Accepting Business at a Special Price

   Power Serve Company expects to operate at 82% of productive capacity during July. The total manufacturing costs for July for the production of 29,520 batteries are budgeted as follows:

   Direct materials	$397,500
   Direct labor	146,100
   Variable factory overhead	40,896
   Fixed factory overhead	82,000
   Total manufacturing costs	$666,496

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