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Zeke was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and
Zeke was a professional classical guitar player until a motorcycle accident 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 $800, and the fixed monthly operating costs are as follows: $600 Rent and utilities Wages and benefits to luthier Other expenses 2,000 483 Zeke's accountant told him about contribution margin ratios, and Zeke understood clearly that for every dollar of sales, $0.65 went to cover his fixed costs, and anything above that point was profit. Zeke wishes to earn $5,000 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit. (Round your answer to the nearest dollar.) O A. $8,809 O B. $4,743 O C. $12,435 O D. $23,094
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