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Power Serve Company expects to operate at 82% of productive capacity during July. The total manufacturing costs for July for the production of 27,880 batteries
Power Serve Company expects to operate at 82% of productive capacity during July. The total manufacturing costs for July for the production of 27,880 batteries are budgeted as follows: Direct materials Direct labor $449,300 165,200 46,256 93,000 Variable factory overhead Fixed factory overhead Total manufacturing costs $753,756 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 Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
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