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Stars Ltd. sells product Special for 30 per unit. Managers of the company have calculated that, if Stars Ltd. sells 2,014 units of Special,
Stars Ltd. sells product Special for 30 per unit. Managers of the company have calculated that, if Stars Ltd. sells 2,014 units of Special, total costs will equal to total revenues. The fixed cost per unit equals 20 when the company is selling 2, 014 units of Special. Considering this information, which of the following statements is true? O a. Starts Ltd. would make a positive profit when selling 1,000 units of Special. O b. Stars Ltd. would have a safety margin of 986 units if selling 3, 000 units of Special. O c. Stars Ltd. would make a positive profit of 19, 720 if selling 2, 500 units of Special. O d. None of the answers is true.
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