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:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back and transmits neural signals between the brain and the rest of the body.

Cross-Sectional View

Provides a view of an object as if it were sliced perpendicularly to show its internal structure.

White Matter

Brain and spinal cord tissue consisting mainly of myelinated nerve fibers that transmit signals.

Gray Matter

Regions of the brain and spinal cord that are primarily made up of neuronal cell bodies, dendrites, and unmyelinated axons, involved in muscle control and sensory perception.