Suppose the firm faces a price of $49, an average variable cost of $26, and has an average fixed cost of $5. in the short-run, this firm

a. can cover all its costs,
b. cannot cover all its costs,
a. and will have a loss per unit of $18.
b. and will have a profit per unit of $23.
c. and will have a profit per unit of $18 .
d. and will have a loss per unit of $23.

Palmer frosted flakes company offers its customers a pottery cereal bowl if they send in 3 boxtops from palmer frosted flakes boxes and $1. the company estimates that 60% of the boxtops will be redeemed. in 2012, the company sold 675,000 boxes of frosted flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. if the bowls cost palmer company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?