A Customer Brings Their Vehicle into the Shop Complaining About

question 54

Multiple Choice

A customer brings their vehicle into the shop complaining about poor performance. You test drive the vehicle and find that the transmission is only operating in 3rd gear. Tech A states that this could be cause by a bad 2/4 clutch. Tech B says this could be caused by the TCM not having power. Who is correct?

• A) Tech A
• B) Tech B
• C) Both A and B
• D) Neither A nor B

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit of a product, indicating how much each unit sold contributes to covering fixed costs and generating profit.

Break-even

The situation in which complete costs equate to total revenues, achieving a break-even point with no gains or losses.

Unit Sales

The number of individual units sold by a company during a specific period.

Degree of Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales, indicating the extent to which fixed costs are used in the production process.