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Question: Goh runs a Fitness Center, which has signed a contract to rent space that costs RM3, 500 per month. If Goh decides to operate,

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Question: Goh runs a Fitness Center, which has signed a contract to rent space that costs RM3, 500 per month. If Goh decides to operate, the cost of hiring fitness trainers is RM6, 000 for the month. If Goh wants to shut down, he still has to pay the rent, but does not have to hire labour. Now, consider THREE (3) possible scenarios. In the first scenario: Fitness Center does not have any members, and therefore does not make any revenues, in which case it faces losses of RM3, 500 equal to the fixed costs. In the second scenario: Fitness Center has members that earn the center revenues of RM6, 000 for the month, but eventually experiences losses of RM6, 000 due to hire fitness trainers to cover the classes. In the third scenario: Fitness Center earns revenues of RM9, 000 for the month, but experiences losses of RM500. Based on the given scenarios, is that Goh should shut down his Beauty Parlour immediately or later or continue

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