Fred runs a fishing lodge,and has a very successful business during the summer.In the fall,the number of guests at the lodge starts to decline,and by November,very few people stay at Fred's Lodge.Fred should:
A) keep the lodge open all year because his summer profits offset any losses he has in the winter.
B) keep the lodge open only during those months in which revenues exceed total costs.
C) keep the lodge open only during those months in which revenues exceed the fixed costs of the lodge.
D) keep the lodge open only during those months in which revenues exceed the variable costs of serving guests.
Correct Answer:
Verified
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