Pacific Company Sells Only One Product for $11 Per Unit,variable

question 173

Multiple Choice

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 ________.

• A) $6.50 per unit
• B) $6.00 per unit
• C) $5.50 per unit
• D) $5.00 per unit

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Definitions:

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as its mean, variance, or standard deviation.

Confidence Interval

A confidence interval is a range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, expressed with a certain level of confidence.

Employee Stock Ownership Plan

A program that provides a company's workforce with an ownership interest in the company, usually in the form of stock options or shares.

Stock Options

Financial instruments that give an employee the right to buy or sell the company's stock at a predetermined price within a specific period.