Question
Arquebus Company is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. He is currently producing 45
Arquebus Company is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. He is currently producing 45 flintlock muskets per month. Cost data are as follows: Selling Price, 36,000, Variable cost, 23,500, and Fixed costs, 400,000. In June, the cost of the special kind of metal he uses went up considerably, and the variable cost per unit increased by 2,500 per unit. The volume and other factors remain constant.
31. Considering the increase in variable costs, the margin of safety expressed in sales revenue is ______________. 32. Considering the increase in variable costs, the margin of safety expressed in units per month is ______ units. (Round UP to a whole number) 33. Considering the increase in variable costs, the degree of operating leverage is _____ .
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