Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 162

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, $0.65 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

---

Definitions:

Phosphate Groups

Chemical groups containing phosphorus and oxygen that play a crucial role in the energy transfer within cells.

Energy

The capacity to do work.

Thymine Dimers

Molecular lesions formed by covalent bonding between two adjacent thymine bases in DNA, often as a result of ultraviolet radiation.

UV Light

Ultraviolet light, a type of electromagnetic radiation with wavelengths shorter than visible light but longer than X-rays, harmful to living tissue.