Shutting Down or Continuing Operations End Trail Campground is open year-round. However, 80% of its revenues are generated from May through October. Because only 20% of the revenues are generated from November to April, the campground is considering closing during those months. The yearly revenues and cost information expected by End Trail for next year if the campground does not close are:

The cost to close the campground at the end of October would be $20,000, and the cost to reopen in May would be $50,000. If the campground is closed, the total fixed costs are only $25,000 per month, rather than the $40,000 per month when the campground is open.
Required:
Determine whether End Trail Campground should close from November to April or remain open for the entire year.

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Camping fees $1,800,000 Variable costs 990,000 Fixed costs ($40,000 per month) 480,000