Arquebus Company Is Owned and Operated by a Craftsman Who

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:
$$\begin{array} { l l } \text { Price } & \$ 720 \text { per unit } \\\text { Variable cost } & \$ 470 \text { per unit } \\\text { Fixed costs } & \$ 8,000 \text { per month }\end{array}$$
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How much is his margin of safety expressed in sales revenue?

A) $2,000
B) $1,600
C) $900
D) $1,200