Millar Company produces a single product that it sells for $89 a unit. If the fixed costs of manufacturing and selling the product are $68,400 a month and the variable costs are $57 a unit, which of the below is correct?

Multiple Choice

• An increase in sales volume above $68,400 a month will cause an increase in fixed costs.
• The contribution margin per unit of product is $32.
• The fixed costs amount to $32 per unit at any level of output within a relevant volume range.
• The company will break even with a sales volume of $68,400 a month.