The UnLucky Diamond Company manufactures Thermal insulation. The company has a two year lease to rent a facility where the insulation is manufactured. The rent is $100,000 per year. The Company cannot avoid the rent payments. The rent payment is the only fixed cost. The contribution margin from the thermal insulation is only $90,000 each year. After careful analysis, it is determined that the Company cannot change the contribution margin in the next two years. So it is impossible for the Company to make a profit. What are the choices the company has? What should the Company do for the next two years?
Explain and justify your answer.