Write a 250-word response to the following question. Do not use the question in your response. At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firms plant in Jackson. The Jackson plant current loses $60,000 monthly. The president of the firm argued that the Jackson plant should continue to operate, at least until a buyer is found for the production facility. The presidents argument was based on the fact that the Jackson plants fixed costs are $68,000 per month. The CEO castigated the president for considering fixed costs in making the shutdown decision.
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