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.