Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 40

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, $0.75 went to cover his fixed costs, and that anything past that point was pure profit. Colin wishes to earn $5,100 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit.

• A)$37,164
• B)$9,054
• C)$12,388
• D)$10,133

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Definitions:

Husbands

Men in a marital relationship, with responsibilities and roles defined differently across cultures, including companionship, support, and often financial provision.

Wives

Married women, considered in relation to their spouses.

Interaction

The exchange, communication, or involvement between two or more entities.

Parent

A caregiver of the offspring in their own species; in humans, it refers to the mother or father who has a role in the child's life.