Accepting Business at a Special Price Forever Ready Company expects to operate at...
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Accepting Business at a Special Price Forever Ready Company expects to operate at of productive capacity during May. The total manufacturing costs for May for the production of batteries are budgeted as follows: Line Item Description Amount Direct materials $ Direct labor Variable factory overhead Fixed factory overhead Total manufacturing costs $ The company has an opportunity to submit a bid for batteries to be delivered by May 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. 
Accepting Business at a Special Price
Forever Ready Company expects to operate at of productive capacity during May. The total manufacturing costs for May for the production of batteries are budgeted as follows:
Line Item Description Amount
Direct materials $
Direct labor
Variable factory overhead
Fixed factory overhead
Total manufacturing costs $
The company has an opportunity to submit a bid for batteries to be delivered by May 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.
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