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

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