Consider the following statements about why prices are often based on product costs: I. Companies sell many products and services, and cost-based approaches provide a simple and direct pricing method. II. The cost of a product or service provides an upper limit above which price should not be set in the long run. IlI. Determining a company's demand and marginal revenue curves is unnecessary. Which of the above statements is (are) true? Select one: O A. Ill only O B. Il and IlI O C. I, II, and IIl O D. I and III. O E.I only Osprey Company is trying to decide between the following two alternatives: lternative B Projected revenue Direct material Assembly labor Production supervisor's salary Facility-related fixed costs $50,000 6,000 9,000 $60,000 12,000 9,000 10,000 15,000 $14,000 Profit $15,000 Which of the following conclusions can be drawn from this example? Which of the following conclusions can be drawn from this example? Select one: O A. Fixed costs are sunk and thus are never relevant for decision making. OB. Some variable costs are relevant for decision making in this case. O C. Relevant costs may include either variable costs or fixed costs but not both O D. None of the above is true. Assume that a capital project (new machinery) is being analyzed by a discounted-cash-flow approach, and the manager first assumes no income taxes and then later assumes a 30% income tax rate. How would annual maintenance expense on the new machinery be incorporated in the analysis? No Income Taxes Considered Considered lgnored lgnored 30% Income Tax Rate Considered lgnored Considered lgnored C. E. The correct answer depends on the depreciation method that is used Select one: O O O A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E O A company's cash flows on account of income taxes are normally affected by: Select one: O A. losses on the sale of assets. O B. gains on the sale of assets. O C. revenues. O D. operating expenses. O E. All of the answers are correct