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:

Undefined Slope

Refers to the slope of a vertical line in coordinate geometry, which cannot be calculated as it would involve division by zero.

Line

In geometry, a straight one-dimensional figure having no thickness and extending infinitely in both directions.

Points

Specific locations in space that are defined by their coordinates.

Slope-Intercept Form

The equation of a straight line in the form y = mx + b, where m is the slope and b is the y-intercept.