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

question 135

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 $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?

• A)40 kits
• B)52 kits
• C)104 kits
• D)116 kits
• E)520 kits

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Definitions:

Planetary Gearset

A gear system that consists of one or more outer gears (planets) revolving around a central (sun) gear, commonly used in transmissions for its compact size and versatility.

Allison TC10

A specific model of automatic transmission by Allison Transmission, designed for commercial vehicles.

Torque Converter

A fluid coupling consisting an impeller, stator, and turbine used to transmit driving torque from an engine to transmission; it provides continuously variable drive ratios and can multiply torque.

Countershafts

Secondary shafts in a gearbox that carry gears of various sizes, affecting the gear ratio between the input and output shafts.