Question

shutdown point written a short notes​

Answer 1

$\bf\large\underline\pink{Answer:-}$

_____________________❤

$\bf\large\underline\green{SHUTDOWN :-}$

The shutdown point denotes the exact moment when a company's (marginal) revenue is equal to its variable (marginal) costs—in other words, it occurs when the marginal profit becomes negative. ... When a company can earn a positive contribution margin, it should remain in operations despite an overall marginal loss.

❤____________________

$\bf\large\underline\blue{Follow me!!!}$

Answer 2

Answer:

hey mate:-

Explanation:

What Is a Shutdown Point:-

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. The shutdown point denotes the exact moment when a company’s (marginal) revenue is equal to its variable (marginal) costs—in other words, it occurs when the marginal profit becomes negative.

At this point, there is no economic benefit to continuing production. If an additional loss occurs, either through a rise in variable costs or a fall in revenue, the cost of operating will outweigh the revenue. At that point, shutting down operations is more practical than continuing, even if the company continues to experience losses in other areas, such as fixed costs. If the reverse occurs, continuing production is more practical.

MARK ME AS BRAINLIST...

HOPE U LIKED IT ❤️✌️