08 May WHAT IS THE UNIT COST BELOW WHICH FOREVER READY COMPANY SHOULD NOT GO IN BIDDING ON THE GOVERNMENT CONTRACT?
Forever Ready Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May for the production of 36 900 batteries are budgeted as follows:Direct materials$286 000Direct labor105 200Variable factory overhead29 460Fixed factory overhead59 000Total manufacturing costs$479 660The 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.https://gyazo.com/95107de53115d1599d099dbdaed9015a
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