Arquebus Company 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. Cost data are as follows: $$\begin{array} { l l }
\text { Price } & \$ 720 \text { per unit } \
\text { Variable cost } & \$ 470 \text { per unit } \
\text { Fixed costs } & \$ 8,000 \text { per month }
\end{array}$$ In June, the cost of the special kind of metal he uses went up considerably, and the variable cost per unit increased by $50 per unit.
-If volume and other factors remain constant, how will this affect the company's breakeven point?

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 40 flintlock muskets per month. Cost data are as follows: $$\begin{array} { l l } 
\text { Price } & \$ 720 \text { per unit } \
\text { Variable cost } & \$ 470 \text { per unit } \
\text { Fixed costs } & \$ 8,000 \text { per month }
\end{array}$$ In June, the cost of the special kind of metal he uses went up considerably, and the variable cost per unit increased by $50 per unit. 
-If volume and other factors remain constant, how will this affect the company's breakeven point?

Quizplus · Accepted Answer

The Answer of Arquebus Company 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. Cost data are as follows: $$\begin{array} { l l } 
\text { Price } & \$ 720 \text { per unit } \
\text { Variable cost } & \$ 470 \text { per unit } \
\text { Fixed costs } & \$ 8,000 \text { per month }
\end{array}$$ In June, the cost of the special kind of metal he uses went up considerably, and the variable cost per unit increased by $50 per unit. 
-If volume and other factors remain constant, how will this affect the company's breakeven point?

Arquebus Company Is Owned and Operated by a Craftsman Who