ques 9 ch 11 hw

Accepting Business at a Special Price Forever Ready Company expects to operate at 90% of productive capacity during May. The total manufacturing costs for May for the production of 36,000 batteries are budgeted as follows: The company has an opportunity to submit a bia for 2,000 batteries to be oelivered by May 31 to a government agency. If the contract is obtained, it is anticpated 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 bldding on the government concract? Round your answer to two declmat places