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shutting a plant or continue to operate/.q…

. this company produce and and sell 40;000 gallon of glue each month.. this glue is call mj-7 is used in the wood industry to manfactury plywood. the selling price of mj-7 is 35 dollar gallon; variable cost=21 dollar per gallon; fixed manfacture overhead cost in the plant total 230,000, per month/ because of strike in the mill that purchase the bulk of the mj-7 glue have cuse this company sale todrop to only 11,000 gallon per month. this company think the strike will last only 2 months..after strike the sale should pick up. due to the current low level of sale this company is thinking of closing this plant.. if this company do close plant; fixture manufacture overhead cost can be reduce by 60,000 per month and fix selling cost can bereduce by 10 percent.Start up cost at the end of the shutdown period would total 14 .000. because of this there are no inventory on hand,. question assume that the strike continue for 2 months would u recommend that this company close the plant. and give the reason

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