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Ajax was a professional classical guitarist 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: Ajax's accountant told him about contribution margin ratios,and Ajax understood clearly that for every dollar of sales,$0.60 went to cover his fixed costs,and anything above that point was profit.
How many guitars does Ajax need to sell each month to break even? (Round your answer up to the nearest whole guitar.)
European Countries
Nations located on the continent of Europe, known for diverse cultures, languages, and economies.
Deadweight Loss
The decrease in economic effectiveness when a product or service fails to achieve or cannot attain its balance point.
Cheesecake
A sweet dessert consisting of one or more layers, primarily a thick layer of cream cheese and egg mixture set atop a base made from crushed cookies, crackers, or sponge cake.
Equilibrium Price
The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability where there is no excess supply or demand.
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