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Mars IncProduces 100,000 Boxes of Snickers Bars Which Sell for $4

Question 53

Multiple Choice

Mars Inc.produces 100,000 boxes of Snickers bars which sell for $4 a box.If variable costs are $3 per box,and it has $150,000 fixed operating costs,in the short run,it should


A) shut down as fixed costs are not being covered.
B) keep producing as profits are $50,000.
C) keep producing as variable costs are being met.
D) keep producing as total costs are being recovered.

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