Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 88

Multiple Choice

Colin 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 $700 and the fixed monthly operating costs are as follows: Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and that anything past that point was pure profit. What is the amount of revenue Colin should earn each month to break even?

• A)$9,952
• B)$6,635
• C)$4,968
• D)$5,833

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Definitions:

Neurotropic Factors

Proteins that are essential for the development, function, and survival of nerve cells, or neurons.

Brain Cells

Cells found in the brain which include neurons and glial cells, responsible for processing and transmitting information.

Neuroblasts

Immature neuronal cells capable of dividing and differentiating into various types of neurons.

Glioblasts

Immature glial cells that can differentiate into various types of glial cells in the central nervous system.