Consider a firm that uses capital and labor as inputs and sells 20 comma 000 units of output per year at the going market price of ​$15. Also assume that total labor costs to the firm are ​$240 comma 500 annually. Assume further that the total capital stock of the firm is currently worth ​$400 comma 000​, that the return available to investors with comparable risks is 12 percent​ annually, and that there is no depreciation. Is this a profitable​ firm? Explain your answer.
A. The firm is profitable because profit equals ​$300 comma 000.
B. The firm is profitable because profit equals ​$59 comma 500.
C. The firm is not profitable because profit equals ​$negative 340 comma 500.
D. The firm is profitable because profit equals ​$11 comma 500.
E. The firm is not profitable because profit equals ​$11 comma 500.