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Portland Antique Weaponry is owned and operated by a craftsman who makes replicas of historic ...

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Portland Antique Weaponry is owned and operated by a craftsman who makes replicas of historic ...

Portland Antique Weaponry is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. He is currently producing 40 flintlock muskets per month. Data are as follows:

Sales price per unit   $800
Variable cost per unit   470
Fixed costs per month   10,230

If Portland expects to sell 60 units per month, how much is his margin of safety expressed in sales revenue?
A) $23,200
B) $13,630
C) $48,000
D) $24,800

Textbook

Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5^th

Authors: Miller-Nobles, Mattison, Matsumura

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7 years ago

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7 years ago

Happy to help Smiling Face with Open Mouth

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Muhamad H.

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