A Company Has Fixed Costs of $900 and a Per-Unit

A company has fixed costs of $900 and a per-unit contribution margin of $3.Which of the following statement is (are) true?

A) Each unit "contributes" $3 toward covering the fixed costs of $900.
B) The situation described is not possible and there must be an error.
C) Once the break-even point is reached,the company will increase income at the rate of $3 per unit.
D) The firm will definitely lose money in this situation.
E) Statements "A" and "C" are truE.

Correct Answer:

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