Lucid Corporation Has Fixed Costs of $2,800 and a Per-Unit

Multiple Choice

Lucid Corporation has fixed costs of $2,800 and a per-unit contribution margin of $6. Which of the following statements is (are) true?

A) Each unit "contributes" $6 towards covering the fixed costs of $2,800.
B) The situation described is not possible and there must be an error.
C) Once the break-even point is reached, Lucid will lose money at the rate of $6 per unit.
D) Lucid will definitely lose money in this situation.
E) In order for Lucid to break-even they must increase their fixed costs.