Calculate shutdown point of precision engineering department

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Precision Engineering department has collected data on its average costs of production for the past 12 months. The monthly fixed cost is $4000 per month. The AVC and associated output data are presented below:

Month

Q    

AVC $

Jan

70

375  

Feb    

58    

540       

Mar     

160    

450       

Apr     

120    

255       

May     

130    

138       

Jun     

120    

150       

Jul     

10    

450       

Aug     

35    

350       

Sep     

80    

60       

Oct     

110    

70       

Nov     

100    

90       

Dec     

190    

153    

Explain the significant point in determining the shut down condition of Precision Engineering department.

Additional Information

This types of question lies from  Statistics and explain about calculating the shut down condition in the company from the data given in the AVC table of Precision Engineering deparment.

 

 

Reference no: EM13828941

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