Jared runs a personal training studio, earning $5,000 last month. His fixed costs are $4,000, and his variable costs are $3,500. Should Jared shut down his business immediately? a) Yes, because he is clearly losing money.
b) Yes, because $5,000 cannot cover his fixed costs.
c) No, because $5,000 covers his fixed costs.
d) No, because $5,000 covers his variable costs.
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