A company has fixed costs of $750 and a per-unit contribution margin of $4. Which of the following statement(s) is (are) true?

a) Each unit "contributes" $4 toward covering the fixed costs of $750.

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 $4 per unit.

d) The firm will definitely lose money in this situation.

e) Statements A and C are true.