Business, 22.04.2021 23:50 NetherisIsTheQueen

Accepting Business at a Special Price Forever Ready Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production of 32,560 batteries are budgeted as follows: Direct materials $254,600 Direct labor 93,600 Variable factory overhead 26,240 Fixed factory overhead 52,000 Total manufacturing costs $426,440 The company has an opportunity to submit a bid for 2,000 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

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