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Steven is a professional classical guitar player. He started a small shop to make and sell Spanish guitars. The guitars sell for $800 and the
Steven is a professional classical guitar player. He started a small shop to make and sell Spanish guitars. The guitars sell for $800 and the fixed monthly operating costs are as follows:
Rent and utilities | $1,250 |
Wages and benefits | 2,500 |
Other expenses | 490 |
The variable costs for the guitars is $280
Steven wishes to earn $6,000 of operating profit each month. Calculate the number of guitars Steven will have to sell to achieve the target profit.
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