Shutdown Point

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Dictionary Says

Definition of 'Shutdown Point'

A point of operations where a firm is indifferent between continuing operations and shutting down temporarily. The shutdown point is the combination of output and price where a firm earns just enough revenue to cover its total variable costs.
Investopedia Says

Investopedia explains 'Shutdown Point'

If a firm is operating at its shutdown point, it is usually operating at a loss. The concept is that if a firm can produce revenue greater or equal to its total variable costs, it can use the additional revenue to pay down its fixed costs. This assumes that fixed costs will still be incurred when a firm shuts down, such as lease contracts or other lengthy obligations.  In other words, when a firm can earn a positive contribution margin, it should remain in operations, despite an overall loss.
Search results for

'Shutdown Point'

  • Here We Go Again – Markets Continue To Move On Governments

    http://stocks.investopedia.com/stock-analysis/2011/Here-We-Go-Again--Markets-Continue-To-Move-On-Governments-TLT-SHY-GLD-DB-UBS-MS-GS0926.aspx
    ... If the politicians in Washington continue to court a government shutdown and play
    a ... Europe Keeps Hoping At this point it seems pretty clear that the European ...

  • A New Patent Problem For Smartphone Makers

    http://stocks.investopedia.com/stock-analysis/2010/A-New-Patent-Problem-For-Smartphone-Makers-AAPL-GOOG-MSFT-MOT-RIMM-T-VZ0715.aspx
    ... upon your point of view) about five years ago when it aggressively pursued a case
    against Research In Motion (Nasdaq:RIMM) that threatened to shutdown down ...

  • The Biggest Nuclear Operators In The United States

    http://stocks.investopedia.com/stock-analysis/2011/The-Biggest-Nuclear-Operators-In-The-United-States-DUK-PGN-SO-EXC-ETR-D-NEE0328.aspx
    ... By Email. Tutorial: The Industry Handbook More to the point, while there ... widespread
    shutdowns of nuclear facilities that would resemble the shutdown of drilling ...

  • Hot Stocks To Start 2011

    http://stocks.investopedia.com/stock-analysis/2011/Hot-Stocks-To-Start-2011-JKS-CAM-PTEN-AMAT-NVLS-BCS-BBVA0302.aspx
    ... Fears of a US federal government shutdown? ... That latter point is good news for the
    equipment makers - as several major chip companies commit to multi-billion ...

  • History Of The Toronto Stock Exchange

    http://www.investopedia.com/articles/stocks/08/history-of-toronto-stock-exchange.asp
    ... the cost of membership had risen to $250 per seat, at which point the TSX ... 1914, concerns
    about financial panic due to World War I prompted the shutdown of the ...

  • What If There Were No Government? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/What-If-There-Were-No-Government.aspx
    ... For more read Why You Don't Want A Government Shutdown ... mistaken when they say the
    US government does all harm and no good, they may yet have a point, insofar as ...

  • CFA Level 1 Study Guide - Financial Statements - Income Statement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/income-statement-components.asp
    ... Volatility; 14.48 Effective, Modified, and Macaulay Duration; 14.49 Convexity;
    14.50 Price Value of a Basis Point (PVBP). 15. Derivatives: ...

  • CFA Level 1 Study Guide - Financial Statements - Income Statement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/income-statement-non-recurring.asp
    ... Volatility; 14.48 Effective, Modified, and Macaulay Duration; 14.49 Convexity;
    14.50 Price Value of a Basis Point (PVBP). 15. Derivatives: ...

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