The following total budgeted manufacturing costs are for 20,000 face masks that Lexi Enterprises, Inc....
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The following total budgeted manufacturing costs are for 20,000 face masks 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 face masks 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. Question: What is the lowest bid per unit that Lexi Enterprises, Inc. should bid? $10.00 $ 8.25 $16,50 $ 7.50
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