Jany Ltd Produces 20 000 Golf Balls

Jany Ltd produces 20 000 golf balls. Each golf ball sells for $4, and it costs $50 000 to produce the golf balls. However, Jany Ltd is considering switching to golf clubs, which have a contribution margin of $10. The cost of the fixed plant and equipment needed to produce the golf balls is $15 000. Jany Ltd expects to sell 1000 golf clubs per period at $100 each. Which of the following is true?

A) Golf balls are more profitable per unit than golf clubs.
B) The contribution margin per golf ball is $8.50 larger than that for each golf club.
C) Total revenue from golf clubs will be higher than that from golf balls.
D) Every golf club sold contributes $8.50 more to the company's profit than each golf ball.