Forever Ready Company expects to operate at $90\%$ of productive capacity during May. The total manufacturing costs for

May for the production of $31,500$ batteries are budgeted as follows:

The company has an opportunity to submit a bid for $1,000$ 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 Forever Ready Company should not go in bidding on the government contract? Round

your answer to two decimal places.

s

$x$ per unit

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Divide the variable cost by the number of batteries budgeted for production.