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please provide explaination Accepting Business at a Special Price Forever Ready Company expects to operate at 82% of productive capacity during July. The total manufacturing
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Accepting Business at a Special Price Forever Ready Company expects to operate at 82% of productive capacity during July. The total manufacturing costs for July for the production of 31,160 batteries are budgeted as follows: Direct materials $345,400 Direct labor 127,000 Variable factory overhead 35,508 Food factory overhead 71,000 Total manufacturing costs $578,908 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 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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