Question

7. A shut down point is the point at which a) Marginal cost and purchase price should be considered b) Contribution is less than fixed cost​

Answer 1

Answer:

A shutdown point is a level of operations at which a company experiences no benefit for continuing operations and therefore decides to shut down temporarily—or in some cases permanently. It results from the combination of output and price where the company earns just enough revenue to cover its total variable costs.