Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ajax was a professional classical guitarist until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (a
Ajax was a professional classical guitarist until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (a maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $700, and the fixed monthly operating costs are as follows: Rent and utilities $800 Wages and benefits to luthier $2,000 471 Other expenses Ajax's accountant told him about contribution margin ratios, and Ajax understood clearly that for t every dollar of sales, $0.70 went to cover his fixed costs, and anything above that point was profit How many guitars does Ajax need to sell each month to break even? (Round your answer up to the nearest whole guitar.) No OA. 6 guitars OB. 3 guitars cu OC. 5 guitars S D. 7 guitars
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started