Artisan Works Is Owned and Operated by a Craftsman Who

question 161

Multiple Choice

Artisan Works is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. The data are as follows: $$\begin{array} { | l | r | } \hline \text { Sales price per unit } & \$ 780 \\\hline \text { Variable cost per unit } & 470 \\\hline \text { Fixed costs per month } & 8370 \\\hline\end{array}$$ If Artisan expects to sell 60 units per month, what is his margin of safety expressed in units per month?

• A) 33 units
• B) 60 units
• C) 87 units
• D) 31 units

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the accounts for the next period.