Question: Consider the information provided by the following graph corresponding to Sunny Ltd.: Sales & Costs () Total Revenues 270,000 112,500 2,500 Total Costs Units

Consider the information provided by the following graph corresponding to Sunny Ltd.:

Consider the information provided by the following graph corresponding to Sunny Ltd.: Sales & Costs () Total Revenues 270,000 112,500 2,500 Total Costs Units of Diamond sold 6,000 The current level of units of product Diamond sold by Sunny Ltd. is 6, 000 units and the cost per unit of Diamond sold is 25. Considering the previous information, which of the following statements is true? a. With this information, we cannot calculate the margin of safety. b. Total fixed costs equal 50,000. c. Total contribution is smaller than total fixed costs when Sunny Ltd. sells 6,000 units of Diamond. d. None of the answers is true.

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