Yang Manufacturing makes a product called Yin. The relevant range of operations is between 2500 units and 10 000 units of Yin per month. Per unit costs at two activity levels are as follows: 5000 units at $17.00 per unit; 7500 units at $13.00 per unit. Determine their total cost if Yang produces 10 000 units.

A) $130 000
B) $125 000
C) $110 000
D) $100 000

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid for the purposes of cost behavior analysis and budgeting.

Activity Levels

Various measures of activity within a company, such as production volume or sales, that can influence costs and operational performance.

Per Unit Costs

Refers to the cost associated with producing or acquiring a single unit of product or service, inclusive of all variable and allocated fixed costs.