Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a book value of $281,400 (original cost of $401,400 less accumulated depreciation of $120,000) for $277,100, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $285,200 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $24,800. a. Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) November 7 Lease Machinery (Alternative 1) Sell Machinery (Alternative 2) Differential Effect on Income (Alternative 2) Revenues Costs Income (Loss) $ b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Accepting Business at a Special Price Power Serve Company expects to operate at 88% of productive capacity during July. The total manufacturing costs for July for the production of 36,080 batteries are budgeted as follows: Direct materials $370,500 Direct labor 136,200 Variable factory overhead 38,108 Fixed factory overhead 76,000 Total manufacturing costs $620,808 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. per unit