Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 46

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 $1300 and the fixed monthly operating costs are as follows:
$$\begin{array} { | l | l | } \hline \text { Rent, electricity and gas } & \$ 1000 \\\hline \text { Wages and benefits to luthier } & 2900 \\\hline \text { Other expenses } & 540 \\\hline\end{array}$$
Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales,$0.50 went to cover his fixed costs and that anything past that point was pure profit.
How many guitars does Colin have to sell each month to break even?

• A) 6 guitars
• B) 7 guitars
• C) 5 guitars
• D) 4 guitars

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Definitions:

Mood Congruency

The psychological phenomenon where an individual's current mood affects their recall of memories, with a tendency to remember information that is consistent with their current mood.

Mood State

is the temporary emotional state or condition that influences a person's perception, behavior, and interactions at a given time.

Recall

The ability to retrieve and retain information over time.

Sentiment Analysis

The process of using natural language processing techniques to extract and identify subjective information in text, such as opinions and emotions.