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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
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 $600, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier $800 $2,000 Other expenses $472 Zeke's accountant told him about contribution margin ratios, and Zeke understood clearly that for every dollar of sales, $0.75 went to cover his fixed costs, and anything above that point was profit. Zeke wishes to earn $5,300 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit. (Round your answer to the nearest dollar.) OA. $34,288 OB. $13,088 OC. $4,363 OD. $11,429 4
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