Please show the steps to solve this problem Accepting Business at a Special Price Power Serve Company expects to operate at 82 of productive capacity during May The total manufacturing costs for May for the production of 31,160 batteries are budgeted as follows Direct materials $425,900 Direct labor 156,600 Variable factory overhead 43,816 Fixed factory overhead 88,000 Total manufacturing costs $714,316 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 Power Serve Company should not go in bidding on the government contract Round your answer to two decimal places $ per unit

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Question: Please show the steps to solve this problem. Accepting Business at a Special Price Power Serve Company expects to operate at 82% of productive capacity

Please show the steps to solve this problem.

Accepting Business at a Special Price

Power Serve Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May for the production of 31,160 batteries are budgeted as follows:

Direct materials	$425,900
Direct labor	156,600
Variable factory overhead	43,816
Fixed factory overhead	88,000
Total manufacturing costs	$714,316

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

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