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Slate was a professional classical guitar player until a motorcycle accident at left him disabled. After long months of therapy, he hired an experienced luthier
Slate was a professional classical guitar player until a motorcycle accident at 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 each, and the fixed monthly operating costs are as follows: Rent and utilities $800 Wages and benefits to luthier $2520 Other expenses $480 Slate's accountant told him about contribution margin ratios, and Slate understood clearly that for every dollar of sales, $0. went to cover his fixed costs, and anything above that point was profit. Slate is planning to increase the sales price to $820. What impact will the increase in sales price have on the breakeven point in units? (Round your answer up to the nearest whole guitar.)
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