Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month.How many unitsmust ABC sell to earn a profit of $7,500?

• A.8,500
• B.750
• C.42,500
• D.1,000

Which statement correctly describes variable costs? Select one answer.

A.None of the above.

• B.Variable costs are constant in total and the per-unit cost decreases with production
• C.Variable costs are constant per unit and constant in total
• D.Variable costs are constant per unit and the total increases with production