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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

1K+

26-Oct-20 07:04

33

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 09:42

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?


Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

1K+

28-Oct-20 10:19

Yes

Ok sir


Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

1K+

28-Oct-20 13:03

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