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Ampro-Mag Is a Small Company That Makes Materials for Safely

Question 53

Multiple Choice

Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labour to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?


A) 75 neutralizing kits
B) 68 neutralizing kits
C) 104 neutralizing kits
D) 47 neutralizing kits

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