Under what condition should a grocery store decide to close during nighttime hours?

Show Answers

If the variable expenses of remaining open are lower than the revenue generated by staying open.If the overall costs of operating during the night are less than the income earned by staying open.If the variable expenses of staying open exceed the revenue earned from operating at night.If the total costs of nighttime operation surpass the revenue obtained from staying open.

Explanation

A grocery store should shut down at night if the variable costs of staying open are higher than the revenue generated during those hours. This means that continuing operations would lead to losses on the variable costs alone, making it unprofitable to remain open.