Pacific Company sells only one product for $11 per unit, variable production costs are $3 per unit, and selling and administrative costs are $1.50 per unit. Fixed costs for 10,000 units are $5,000. The operating income is ______.

Select one: a. $5.50 per unit b. $6.50 per unit c. $6.00 per unit d. $5.00 per unit ----------------

Variable costs ______.

Select one: a. increase in total when the actual level of activity increases b. include most personnel costs and depreciation on machinery c. are always indirect costs d. are never considered a part of prime cost --------------

Which of the following is a limitation of AARR method?

Select one: a. It is difficult to compare projects as its result is expressed in dollars and not in percentage terms. b. It does not consider income earned throughout a project's expected useful life. c. It does not consider time value of money. d. It does not track initial investment

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