Arquebus Company Is Owned and Operated by a Craftsman Who

question 133

Multiple Choice

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: 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?

• A)It will go up by 12 units.
• B)It will have no effect on breakeven.
• C)It will go up by 8 units per month.
• D)It will go down by 2 units per month.

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Definitions:

Fostering Action Plans

Developing and implementing strategies to achieve specific goals, often involving the coordination of resources and tasks.

Herzberg's Two-factor Theory

A theory in organizational psychology that distinguishes between motivation factors, which encourage employees, and hygiene factors, which can cause dissatisfaction if absent but not necessarily motivate when present.

Satisfier

This term often refers to a factor that contributes to an individual's satisfaction, potentially leading to motivation or a positive state of well-being.

Advancement

Progress or development within a career or organization, often marked by promotions, increased responsibilities, or professional growth.