The general rule is to discontinue a service when its total fixed costs are less than its avoidable fixed costs.

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The general rule is to discontinue a service when its total fixed costs are greater than its avoidable fixed costs. This is because avoidable fixed costs are the costs that can be eliminated if the service is discontinued, while total fixed costs include both avoidable and unavoidable fixed costs. Discontinuing a service with lower avoidable fixed costs but higher total fixed costs would result in a larger total loss for the company.

The General Rule Is to Discontinue a Service When Its