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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 Other expenses $600 $2,400 $475 Zeke's accountant told him about contribution margin ratios, and Zeke understood clearly that for every dollar of sales, $0.70 went to cover his fixed costs, and anything above that point was profit. Zeke wishes to earn $5,100 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. $28,583 OB. $4,964 OC. $11,583. OD. $12.250
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