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Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 162

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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 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, $0.65 went to cover his fixed costs, and that anything past that point was pure profit. Colin wishes to earn $4,000 of operating profit each month. Calculate the number of guitars Colin will have to sell to achieve the target profit. A) 39 guitars B) 33 guitars C) 15 guitars D) 18 guitars Colin'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. Colin wishes to earn $4,000 of operating profit each month. Calculate the number of guitars Colin will have to sell to achieve the target profit.


Definitions:

Pseudoconflict

A perceived conflict that arises from misunderstandings or miscommunications rather than actual disagreements or differences.

Simple Conflict

A basic disagreement or clash between parties with differing opinions, interests, or goals, which is typically uncomplicated and resolvable through communication.

Ego Conflict

occurs when a disagreement or confrontation challenges an individual's sense of self-esteem or identity.

Ego Conflict

A type of conflict that arises when a disagreement becomes personal, leading to attacks on someone's character or self-esteem.

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