Kaplan Inc

question 82

Multiple Choice

Kaplan Inc. produces flash drives for computers which it sells for $27 each. The variable cost to make each flash drive is $13. During April 700 drives were sold. Fixed costs for April were $2 per unit for a total of $1400 for the month. How much is the monthly break-even level of sales in dollars for Kaplan?

• A) $100
• B) $2700
• C) $14000
• D) $8400

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Definitions:

Drum Brake Assembly

A type of brake system that uses brake shoes pressed outwards against a rotating drum to slow or stop a vehicle.

Non-servo Designs

Brake or other mechanical systems designed without the use of a servo mechanism, often simpler and requiring manual operation or greater force.

Secondary Shoe

In drum brakes, the brake shoe that is positioned to be actuated secondarily during brake application.

Primary Shoe

The brake shoe in a drum brake system that is closest to the front of the vehicle, playing a critical role in stopping the car.