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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 (a
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 $600, and the fixed monthly operating costs are as follows: Rent and utilities $700 Wages and benefits to luthier $2,200 Other expenses $480 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. Martin wishes to earn $2,000 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.) O A. 13 guitars O B. 6 guitars O c. 2 guitars O D. 15 guitars
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