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 $800 and the fixed monthly operating costs are as follows:

Steven's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, $0.65 went to cover his fixed costs, and that anything past that point was pure profit.

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.

Rent and utilities $1,250

Wages and benefits to luthier $2,500

Other expenses $490

a.19 guitars

b. 37 guitars

c.9 guitars

d.20 guitars