Accepting Business at a Special Price

Power Serve Company expects to operate at 90% of productive capacity during May. The total manufacturing costs for May for the production of 34,200 batteries are budgeted as follows:

Line Item Description	Amount
Direct materials	$290,700
Direct labor	106,900
Variable factory overhead	29,900
Fixed factory overhead	60,000
Total manufacturing costs	$487,500

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