Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 73

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: $$\begin{array} { | l | r } \hline \text { Rent and utilities } & \$ 1,210 \\\hline \text { Wages and benefits to luthier } & 2,500 \\\hline \text { Other expenses } & 481 \\\hline\end{array}$$ 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:

Humanism

A philosophical stance that emphasizes the value and agency of human beings, individually and collectively.

Andragogy

The art and science of helping adults learn, differing from pedagogy, which focuses on the education of children.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals have different kinds of intelligences, including linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, and intrapersonal.

Behaviorism

A theory of learning that focuses on observable behaviors and suggests that all behaviors are acquired through conditioning processes without considering thoughts or feelings.