Many gift shops along the ocean shut down during the winter because

Question

Quizplus · Accepted Answer

Since the gift shops are located along the ocean, they likely receive the majority of their business during the summer tourist season. With less demand during the winter months, it is possible that the revenues generated from sales cannot cover the variable costs of running the shop, such as rent, utilities, and salaries for employees. Shutting down for the winter would therefore minimize losses that would occur if the shop remained open, which supports choice E as the best answer.

Many Gift Shops Along the Ocean Shut Down During the Winter