Q. A company is operating below capacity. What is the most likely result when production rises?

1. The fixed cost per unit will decrease.
2. The variable cost per unit will increase.
3. The total cost per unit remains constant.

Q. Which of the following questions can be answered by using accounting ratio analysis?

1. What is the company's cash balance?
2. What is the company's current market share?
3. How much profit is the company generating from its assets?