Power Serve Company expects to operate at 82% of productive capacity during July. The total manufacturing costs for July for the production of 34,440 batteries are budgeted as follows:

Direct materials	$409,800
Direct labor	150,700
Variable factory overhead	42,200
Fixed factory overhead	84,000
Total manufacturing costs	$686,700

The company has an opportunity to submit a bid for 3,000 batteries to be delivered by July 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during July or increase the selling or administrative expenses.

What is the unit cost below which Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places.
$ per unit

Answer rating: 100% (QA)

Absolutely to determine the minimum unit bid price for Power Serve Company we need to consider the v... View the full answer