Afirm's monthly revenue is $15,000, its variable cost is $10,000, and its fixed cost $5,000, of...

Question

Question

Answer 1

Answer #1

C)Not shut down because it's revenue is greater than it's unavoidable cost.

Revenue= $ 15000

Variable cost $ 10000

Fixed cost ($ 5000 -$2000)= $ 3000

Profit = ($15000-($10000 +$3000)

= $ 2000

Answer 2

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