Final answer:
The business question involves evaluating a center's financial viability based on its revenues and variable costs to determine if it should continue or shut down. When revenues exceed variable costs, the center should stay in business, but if revenues are less, shutting down is suggested. The sharing of net profits among students is also addressed, with each active student receiving a portion of the profit.
Step-by-step explanation:
The question seems to be related to the calculation of net profit and the analysis of a business decision based on financial data. When a business center earns revenues of $20,000 and has variable costs of $15,000, it generates a net profit by subtracting the costs from the revenues, resulting in $5,000. This indicates that the center is currently profitable and should continue in business.
However, if the revenues drop to $10,000 while variable costs remain at $15,000, then the business is operating at a loss of $5,000, suggesting that the business should consider shutting down unless there are strategic reasons to continue operating at a loss. In the context of the net profit and student share scenario presented initially, if a center has a net profit of $10,500.00 and 60% of this profit is shared among 25 active students, each student would receive $252 (60% of $10,500 divided by 25 students).