Question: a) GEM Ltd makes an electronic product called PIN. The relevant range of operations is between 3,500 units and 10,000 units of PIN per month.

a) GEM Ltd makes an electronic product called PIN. The relevant range of operations is between 3,500 units and 10,000 units of PIN per month. Per unit costs at two activity levels are as follows: 4,000 units at $16.00 per unit; 8,000 units at $12.00 per unit. Required: Determine the total cost if GEM Ltd produces 10,000 units.

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