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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
150
Jul
10
Aug
35
350
Sep
80
60
Oct
110
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.
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