Zeke Was a Professional Classical Guitar Player Until a Motorcycle

question 44

Multiple Choice

Zeke was a professional classical guitar player until a motorcycle accident left him disabled.After long months of therapy,he hired an experienced luthier and started a small shop to make and sell Spanish guitars.The guitars sell for $800,and the fixed monthly operating costs are as follows: $$\begin{array} { | l | r | } \hline \text { Rent and utilities } & \$ 700 \\\hline \text { Wages and benefits to luthier } & 2300 \\\hline \text { Other expenses } & 479 \\\hline\end{array}$$ Zeke's accountant told him about contribution margin ratios,and Zeke understood clearly that for every dollar of sales,$0.75 went to cover his fixed costs,and anything above that point was profit.
Zeke wishes to earn $5100 of operating profit each month.Calculate the amount of sales revenue required to achieve the target profit.(Round your answer to the nearest dollar.)

• A)$4639
• B)$13,916
• C)$11,439
• D)$34,316

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise rather than internal satisfaction.

Symbolic Self-Completion

A theory suggesting individuals strive to achieve and display symbols of success in areas important to their self-identity to feel complete.

Intrinsic Motivation

The drive to act or engage in an activity for its own sake, deriving pleasure or satisfaction from the activity itself rather than external rewards.

Adequate Resources

Having sufficient means, materials, or assets required to achieve a goal or fulfill a need.