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

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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 $100. The costs of the materials that go into each kit are $45. It costs $5 in labor 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?


Definitions:

Multinational Chain

A company that owns and operates facilities in multiple countries across the globe.

Brick And Mortar

Brick and Mortar refers to businesses that have physical premises for customers to visit as opposed to operating solely online.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.

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