Pacific Company Sells Only One Product for $12 Per Unit

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