Shut-Down Price

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Shut-Down Price

The price of a product below which it is cheaper for a company not to make the product than to continue to sell it. That is, the shut-down price is the price at which the company will begin to lose money for making the product.
References in periodicals archive ?
Instead, you'll wait to shut down until the market price per barrel falls enough below the $20 boundary that the probability of quick recovery is low and therefore the present value of expected losses equals the shut-down cost of $5 million.
He added the shut-down cost a total of pounds 600,000, half of which had to be met by council taxpayers in north London.
Still, when a facility is designated as a must-run unit, the owner of the power facility could called for extra compensation to retrieve additional prices it will obtain for running at maximum capacity and these price may cover the cost of fuel; variable operating and maintenance costs; and start-up and shut-down costs.
The Eaglescliffe plant shut-down costs included more than pounds 16m on site remediation, pounds 5m for staff costs and pounds 4.
SBT is implemented in 20 sites in India and some of the benefits include no start-up or shut-down costs, silent operation and the chemical free process.
The Company initially projected EBITDA of approximately $40 million to $43 million for the fiscal year; the Company currently anticipates that their adjusted EBITDA (after adjusting for approximately $17 million in non-recurring charges related to shut-down costs at approximately 50 unprofitable off-campus stores) will be approximately $39 million over that period.
The charges include approximately $9 million in severance charges and approximately $3 million in site clean-up and shut-down costs.
We expect a decline in overall originations in 2008 and will incur severance and facility shut-down costs in the fourth quarter of 2007 as we adjust headcount to our revised origination forecasts for 2008.
Mid-market organizations that estimate one-day shut-down costs between $25-$500k were the most vulnerable to disaster, with 28 percent estimating it would take more than three days to recover data and applications Only 16 percent of all other companies estimated the same.
WWE had accrued for all estimated shut-down costs in previous fiscal years, including the rent anticipated under the lease, net of any sub-let income.
Assuming the successful completion of the OSS sale in Q1 1997, the resulting gain is expected to be recognized in that quarter and is expected to be significantly offset by shut-down costs associated with the transaction.
Third quarter results were also negatively impacted by shut-down costs and higher costs of product resulting from production cutbacks for inventory control reasons.