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A firm with $50,000 in fixed costs, selling price of $25 per unit, and variable costs of $5 a unit is currently operating at breakeven

A firm with $50,000 in fixed costs, selling price of $25 per unit, and variable costs of $5 a unit is currently operating at breakeven volume. If sales increase 100 units and costs remain the same, the firm will:

a.

increase variable costs of $2500.

b.

have a profit of $2000.

c.

have a loss of $2000.

d.

lower its total fixed costs.

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