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:
Verified
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