Q). GEM Limited has a single product Flicks. The company normally produces and sells 80,000 units of Flicks each year at a price of $240 per unit. The company's unit costs at this level of activity are as follow:

Direct material $57.00 Direct labour 60.00 Variable manufacturing overhead 16.80 Fixed manufacturing overhead 30.00 Variable selling and administrative costs 10.20 Fixed selling and administrative costs 27.00 Total unit cost $201.00