Martin 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: Rent and utilities Wages and benefits to luthier Other expenses $800 2,200 473 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.70 went to cover his fixed costs, and anything above that point was profit. Martin wishes to earn $3,500 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 OB. 5 guitars O c. 4 guitars OD. 15 guitars Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance. Actual fixed overhead $32,000 Budgeted fixed overhead $20,000 Standard overhead allocation rate $8 Standard direct labor hours per unit 3 DLHr Actual output 2,000 units O A. $28,000 F O B. $16,000 F C. $28,000 U OD. $16,000 U