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Steven was a professional classical guitar player until his motorcycle accident that left him disabled. After long months of therapy, he hired an experienced luthier(maker

Steven was a professional classical guitar player until his motorcycle accident that left him disabled. After long months of therapy, he hired an experienced luthier(maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for

$ 700$700

and the fixed monthly operating costs are asfollows:

Rent and utilities

$ 1 comma 260$1,260

Wages and benefits to luthier

2 comma 5002,500

Other expenses

550550

Steven's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales,

$ 0.65$0.65

went to cover his fixed costs, and that anything past that point was pure profit.Steven wishes to earn

$ 5 comma 000$5,000

of operating profit each month. Calculate the number of guitars Steven will have to sell to achieve the target profit.

A.

2020

guitars

B.

2121

guitars

C.

1010

guitars

D.

3838

guitars

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