The accountants hired by Ohman Shoe Company have calculated fixed costs to equal

Question

The accountants hired by Ohman Shoe Company have calculated fixed costs to equal $30,000, variable cost to equal $100,000, and total revenue to equal $110,000. Because of this information, Ohman Shoe Company decides

The accountants hired by Ohman Shoe Company have calculated fixed costs to equal $30,000, variable cost to equal $100,000, and total revenue to equal $110,000. Because of this information, Ohman Shoe Company decides

A. to exit the industry. B. to shut down. C. decides to stay open because shutting down would be more expensive. D. decides to stay open because they are making an economic profit.

Explanation / Answer

C. decides to stay open because shutting down would be more expensive

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