A small business owner who owns/operates a snow removal company is planning to d

Question

A small business owner who owns/operates a snow removal company is planning to diversify and begin installing in-ground swimming pools to enhance his income for the next two years. He forecasts that he and his employees will be able to install16 in-ground swimming pools this year (reaping any resulting profits at the end of the first year) and 19 pools next year (reaping resulting profits at the end of the second year). Each pool sells for $6,800 this year and $7,200 next year. Expenses (material and labor

Explanation / Answer

Yes, the owner should continue as the fixed costs are still met.

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