1.Which of the following statements about short-term decisions is false? a. Short-term decisions are made within the period covered by the current annual budget, generally less than a year. b. Short-term decisions are derived from the mission statement and strategic plan. c. Once we develop the annual plan, we make short-run decisions to either keep the company on track or to take advantage of unforeseen opportunities. d. Short-run decisions are usually limited by resource constraints that we can only change over the long run. e. All of the above statements are correct. 2. Watches Inc. makes a watch selling for $50 per unit. Operating within its relevant range to make 200,000 watches, the unit costs are $10 for direct materials, $7 for direct labor, $5 in variable overhead and $12 in fixed costs. The company is offered a special order for 5,000 military watches that will require an additional $2 each for a special fitting. What is the incremental breakeven cost per unit for the special order? a. $34 b. $24 c. $22 d. $32 e. None of the above values is correct. 3.Watches Inc. makes a watch selling for $50 per unit. Operating within its relevant range to make 200,000 watches, the unit costs are $10 for direct materials, $7 for direct labor, $5 in variable overhead and $12 in fixed costs. The company is offered a special order for 5,000 military watches that will require an additional $2 each for a special fitting. What should be the special order price per watch for the company to increase its profits by $25,000 if it has excess capacity and is still operating within its relevant range? a. $39 b. $27 c. $29 d. $37 e. None of the above is correct.