Colin Was a Professional Classical Guitar Player Until His Motorcycle

question 67

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 $720 and the fixed monthly operating costs are as follows:
$$\begin{array} { | l | l | } \hline \text { Rent and electricity and gas } & \$ 1400 \\\hline \text { Wages and benefits to luthier } & 2500 \\\hline \text { Other expenses } & 300 \\\hline\end{array}$$
Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales,$0.60 went to cover his fixed costs,and that anything past that point was pure profit.
What is the amount of revenue Colin should earn each month to break even?

• A) $7834
• B) $5500
• C) $6500
• D) $11,750

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Definitions:

Howard Gardner

Renowned for his theory of multiple intelligences, which proposes that people have various kinds of intelligences, including linguistic, logical-mathematical, and spatial.

Eidetic Imagery

The ability to access a visual memory for 30 seconds or more.

Semantic Imagery

The process of forming mental pictures or concepts based on the meaning of words, phrases, or sentences.

Episodic Imagery

The mental visualization of specific events or episodes from one's past, which can elicit vivid recall and emotional responses.