Zeke Was a Professional Classical Guitar Player Until a Motorcycle

question 163

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: $$\begin{array} { | l | r | } \hline \text { Rent and utilities } & \$ 700 \\\hline \text { Wages and benefits toluthier } & 2300 \\\hline \text { Other expenses } & 479 \\\hline\end{array}$$ 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:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.