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tempts, a maximum of 40 minutes per attempt. I will take the highest score tempt

ID: 351808 • Letter: T

Question

tempts, a maximum of 40 minutes per attempt. I will take the highest score tempts. Question 10 0.5 pts The Widget Company's total sales are forecasted to be $950,000. Fixed costs are $300,000 and the product sells for $310. The variable costs per unit are $238. Should the Chocolate Company shut down operations? (Assume that fixed costs will continue for the short term). O They should close because they are not making any money O They should close because the volume forecast was not accurate O They should stay open even though they are operating at a loss as long as they cover some of the fixed costs. O They will be profitable so they should remain open even though the proft was less than forecast. MacBook Pro

Explanation / Answer

Option D. They will be profitable so they should remain open even if though the profit was less than forecast.

The fixed costs will only be there for a short term so the things will be better for the company after a period of time.