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

question 4

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 each.The costs of the materials that go into each kit are $25.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,$300 for advertising in trade journals,and $3,000 for the monthly salary of its owner.Ampro-Mag's average revenue per unit is

• A)$30.
• B)$70.
• C)$100.
• D)$130.
• E)$4,500.

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Definitions:

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