644-Q8

Suppose you decide to open a copy store. You rent a store (sign a one-year lease to do so), and you take out a loan at a local bank and use the money to purchase 10 copiers. Six months later, a large chain opens a copy store two blocks away from yours. As a result, the revenue you receive from your copy store, while sufficient to cover the wage of your employees and the costs of paper and utilities, doesn't cover all your fixed costs (rent and the interest and repayment costs on the loan you took to purchase the copiers). Should you continue operating your business?

Explain and show calculations.