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Accepting Business at a Special Price Forever Ready Company expects to operate at...

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Accounting

Accepting Business at a Special Price
Forever Ready Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May for the production of 35,700 batteries are budgeted as follows:
Line Item Description Amount
Direct materials $444,300
Direct labor 163,300
Variable factory overhead 45,710
Fixed factory overhead 91,000
Total manufacturing costs $744,310
The company has an opportunity to submit a bid for 3,000 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.
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