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Joe's ice cream stroe has to decide whether to shut down this winter or stay open. His projected revenue is $1,200 per week. He has fixed costs (Mortgage, taxes, insurance, etc.) that average $800 peru week. His total cost of operating the business is $1,500 per week.
Should he stay open or close down this winter. Use your fabulous economic reasoning to arrive to an answer. If you get it right, Joe will give you all the Heavenly Hash you want.
What are the objectives of working capital management? Briefly explain the various elements of operating cycle.
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