Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560 units of the product which represent 143,400. Total fixed costs equal 66,920 and total contribution equals 66,920.

Required:

a) Considering this information, is Diversity Ltd. selling a profitable amount of its product Star and which would be your advice for the company? Which is the price per unit at which Diversity Ltd. is selling its product? Explain your answer in detail.