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5) Colin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier 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: 5) $1,210 2,500 481 Wages and benefits to luthier Other expenses Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, so.75 went to cover his fixed costs, and that anything past that point was pure profit. Colin wishes to earn $5,100 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit. A) $37,164 B) $12,388 C) $9,054 D) $10,133 6) Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. The total fixed 6) costs are $25,000. What will be the effect on the breakeven point in units if variable costs increase by $5 due to an increase in the cost of direct materials? A) It will increase by 250 units. C) It will decrease by 167 units. B) It will increase by 167 units D) It will decrease by 250 units. 7) The Perfect Fit Company sells hand sewn shirts at $40 per shirt. It incurs monthly fixed costs of 7) $5,000, The contribution margin ratio is calculated to be 20%. What is the variable cost per shirt? D) $48 per shirt A) $40 per shirt B) $32 per shirt C) $38 per shirt 8) Young Company has provided the following information: 8) Price per unit Variable cost per unit Fixed costs per month $40 12 $10,000 Calculate the contribution margin per unit. A) $40 B) $16 C) $52 D) $28 9) From the graph given below, identify the fixed costs line. 9)