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Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier (
Martin was a professional classical guitar player 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 $ and the fixed monthly operating costs are as follows:
Rent and utilities
Wages and benefits to luthier $
Other expenses
$
Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $ went to cover his fixed costs, and anything above that point was profit.
Martin wishes to earn $ of operating profit each month. Calculate the number of guitars Martin will need to sell to achieve the target profit. Round your answer up to the nearest whole guitar.
A guitars
B guitars
C guitars
D guitars
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