Dudley Company produces a single product that sells for $200 per unit. Fixed expenses total $10,000 per month, and variable expenses are $120 per unit. The company's sales average 1,000 units per month. Which of the following statements is correct?
a) The company's break-even point is sales of 125 units.
b) The fixed expenses remain constant at $80 per unit for any activity level within the relevant range.
c) The company's contribution margin ratio is 50%.
d) It will take the company eight months to reach its break-even point.