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please help! Accepting Business at a 5pecial Price Forever Ready Company expects to operate at 85% of productive capacity during May, The total manufacturing costs
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Accepting Business at a 5pecial Price Forever Ready Company expects to operate at 85% of productive capacity during May, The total manufacturing costs for May for the production of 32,300 batteries are budgeted as follows: Direct materials $401,900 Direct labor 147,800 Variable factory overhesd 41,390 \begin{tabular}{lr} Fived factory overhead & 83,000 \\ \cline { 2 - 3 } Total manufacturing costs & $674,090 \end{tabular} 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 Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit Step by Step Solution
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