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Shutdown point and break even point

Sir this two questions are confusing. Pls explain the answer with reason.

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Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

2K+

26-Oct-20

87

Answers (4)

Shut down point is where incremental revenue is less than incremental cost. Break even point is where there is no profit or loss. At this point total cost = total revenue.


Suraj Lakhotia

Suraj Lakhotia

Admin

26-Oct-20

Suraj Lakhotia Admin

Shut down point is where incremental revenue is less than incremental cost. Break even point is where there is no profit or loss. At this point total cost = total revenue.

Sir it means Ac= price : break even point Avc= price : shutdown point Am I right?


Thread Starter

Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

2K+

28-Oct-20

Suraj Lakhotia Admin

Yes

Ok sir


Thread Starter

Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

2K+

28-Oct-20

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