George and Dan's political consulting firm is losing money,but it is more than covering its fixed costs.What is the most accurate statement we can make about it?

Question

Quizplus · Accepted Answer

The firm is covering its fixed costs but still losing money, which means it is not covering its variable costs. In the long run, it will not be sustainable to continue operating at a loss, so it will go out of business.

George and Dan's Political Consulting Firm Is Losing Money,but It