Consider the following information and answer the question below.

		Selling	Direct Labour	Advertising	Machinery
	Sales	price	cost	cost	costs
Product X	12,000 units	$5 per unit	$3 per unit	$400	$5000
Product Y	16,000 units	$4 per unit	$3.50 per unit	$200	$6200

Which of the following is true? Product X:

Select one:

a. contributes more to profit than Product Y.

b. has higher variable costs than Product Y.

c. produces lower profits than Product Y.

d. has higher fixed costs that Product Y.