Accepting Business at a Special PricePower Pack Company expects to operate at 85% of productive capacity during July. The total manufacturing costs for July for the production of 35,700 batteries are budgetedas follows:Direct materialsDirect labor$352,000129,400Variable factory overhead36,250Fixed factory overhead72,000$589,650Total manufacturing costsThe 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 theadditional activity will not interfere with normal production during July or increase the selling or administrative expenses.What is the unit cost below which Power Pack Company should not go in bidding on the government contract? Round your answer to two decimal places.per unit

Step 1: Step 2: Step 3: Step 4:

Answered: Accepting Business at a Special Price…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 14E: Accepting business at a special price Box Elder Power Company expects to operate at 85% of...

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