Solved

Candy Cane Corporation (CCC)produces 100,000 Boxes of Candy Bars Per

Question 92

Multiple Choice

Candy Cane Corporation (CCC) produces 100,000 boxes of candy bars per year that sell for $3 a box.If variable costs are $2 per box and it has $125,000 in fixed operating costs,in the short run the CCC should:


A) shut down as fixed costs are not being covered.
B) keep producing as profits are $25,000.
C) keep producing because variable costs are covered.
D) reduce production until the break-even point is reached.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents