Fran Is Considering Permanently Closing Down Her Beauty Salon

Fran is considering permanently closing down her beauty salon. A consultant advises her that if she stays open for business, she will have operating revenues of $300,000 and operating costs of $280,000. In addition, Fran has paid $40,000 for fixtures that can be resold for $15,000 after she closes the beauty salon. Fran ____ close the beauty salon because ____.

A) should; the value when staying open is negative
B) should; closing results in greater value
C) should not; the value of closing is negative
D) should not; the value of staying open exceeds the value of closing