Question: A company making shirts is evaluating whether it is currently operating at a profit or at a loss. The company is producing 42,000 shirts. The

A company making shirts is evaluating whether it is currently operating at a profit or at a loss. The company is producing 42,000 shirts. The shirts are selling for $ 35.00 per unit; and the fixed cost is $ 500,000. In addition, the variable cost per unit is $ 25. Based on this information, which of the following statements is correct?

a. The breakeven volume is 42,000 units; and the company is operating at a profit.

b. The breakeven volume is 42,000 units; and the company is operating at a loss.

c. The breakeven volume is 50,000 units; and the company is operating at a profit

d. The breakeven volume is 65,000 units; and the company is operating at a profit

e. None of the above

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