Pacific Company Sells Only One Product for $12 Per Unit

question 164

Multiple Choice

Pacific Company sells only one product for $12 per unit, variable production costs are $3 per unit, and selling and administrative costs are $1.70 per unit. Fixed costs for 11,000 units are $6,000. The operating income is ________ when 11,000 units are sold.

• A) $8.45 per unit
• B) $6.75 per unit
• C) $7.30 per unit
• D) $4.70 per unit

---

Definitions:

Repetitive Process

A series of actions or operations that are performed over and over again, usually in a manufacturing or production setting.

Process Chart

A visual representation of the steps involved in a process, showing the sequence of tasks and decisions needed to complete a task or process.

Process Map

A visual representation of the steps, events, and operations that comprise a business process, showing how items flow through various stages.

Schematic Diagram

illustrates the elements of a system using abstract, graphic symbols rather than realistic pictures, emphasizing connections and relationships.