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Pacific Company sells only one product for $11 per unit, variable production costs are $3...

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Question

Accounting

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 $15,000. 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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