Vintage Weaponry is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. He is currently producing 80 flintlock muskets per month. Data are as follows: Sales price per unit$720Variable cost per unit$700Fixed costs per month$600 If Vintage expects to sell 50 units per month, how much is his margin of safety expressed in sales revenue?

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Answered: Vintage Weaponry is owned and operated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vintage Weaponry is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. He is currently producing 80 flintlock muskets per month. Data are as follows:

Sales price per unit	$720
Variable cost per unit	$700
Fixed costs per month	$600

If Vintage expects to sell 50 units per month, how much is his margin of safety expressed in sales revenue?

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