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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
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. Supporting Materials 19 guitars 37 guitars 9 guitars 20 guitars
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