The following total budgeted manufacturing costs are for 20,000 TV remote controls that Lexi Enterprises, Inc. expects to produce and sell during the year. Lexi Enterprises, Inc. is operating at an 70% capacity.

Direct Materials	$130,000
Direct Labor	$20,000
Variable factory Overhead	$15,000
Fixed factory Overhead	$35,000
Total Manufacturing Costs	$200,000

The company has an opportunity to submit a bid for 10,000 TV remotes to be delivered by the end of the year. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during the year or increase the selling and administrative expenses.

What is the lowest bid per unit that Lexi Enterprises, Inc. should bid?

Group of answer choices

None of these answers are correct

$10.00

$7.50

$2.50