42. At the sales level of only 30% of the normal volume, should the company continue
operating or shut down temporarily for two months?
a. Continue, because the expected sales is above the shutdown point.
b. Shut down, because the expected sales is above the shutdown point.
c. Continue, so that the shutdown costs may be avoided.
d. Shut down, because the shutdown costs is less than the contribution margin under
continued operations.
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