Retread Corporation has learned that, because of a shortage of materials, it can only produce and sell at 30% of normal levels during December. If the company stays open for the month, the total contribution margin will be $15,000, and total fixed costs will be $60,000. If the company totally closes down all operations for the month, the total fixed costs would be reduced BY 70%. What should the company do?

Close down for the month of December

Stay open for the month of December