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Accepting Business at a Special Price Power Serve Company expects to operate at 88% of productive...

Accepting Business at a Special Price

Power Serve Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production of 36,960 batteries are budgeted as follows:

Direct materials $520,200
Direct labor 191,300
Variable factory overhead 53,572
Fixed factory overhead 107,000
Total manufacturing costs $872,072

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 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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