A. consider a firm that has no fixed costs and that is currently losing money. are there any situations in which it would want to stay open for business in the short run? yes, the firm might want to operate in the long run. no, the firm will want to shut down. yes, the firm will operate if revenue is greater than variable costs. there is insufficient information to make this determination. b. a firm with no fixed costs should shut down. has an accounting profit. has a normal profit. is really in the long run.

Mr. beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the bb-1 set. (bb-1 stands for body beautiful number 1.) the carrying cost for bb-1 is $5 per set per year. to meet demand, mr. beautiful orders large quantities of bb-1 seven times a year. the stockout cost for bb-1 is estimated to be $50 per set. over the past several years, mr. beautiful has observed the following demand during the lead time for bb-1: demand during lead time probability40 0.150 0.260 0.270 0.280 0.290 0.1total 1.0the reorder point for bb-1 is 60 sets. what level of safety stock should be maintained for bb-1?