1.) It costs Jack, Inc. $35 per unit to manufacture 1,000 units per month of a product that it can sell for $50 each. Alternatively, Jack could process the units further into more complex product, which would cost an additional $30 per unit. Jack could sell the more complex product for $75 each. How would processing the product further affect Jack's profit?

A.) Profit would increase by $5,000

B.) Profit would increase by $25,000

C.) Profit would decrease by $5,000

D.) Profit would decrease by $25,000

2.) True or False:

A special order decision analysis cannot be used to make long-term pricing decisions.

3.) True or False:

A sunk cost is never a relevant cost.