Steven Was a Professional Classical Guitar Player Until His Motorcycle

question 15

Multiple Choice

Steven 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 $800 and the fixed monthly operating costs are as follows:

Steven's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales,$0.65 went to cover his fixed costs,and that anything past that point was pure profit.
Steven wishes to earn $6,000 of operating profit each month.Calculate the number of guitars Steven will have to sell to achieve the target profit.

• A)19 guitars
• B)37 guitars
• C)9 guitars
• D)20 guitars

---

Definitions:

Edit and Revise

The process of reviewing, altering, and amending content in writing to improve accuracy, readability, and coherence, as well as to ensure that it meets the required standards or intentions.

Summarizing Information

The process of condensing important points from a larger body of work into a concise and comprehensive overview.

Left-Brain Dominant

Describes individuals who tend to be more analytical, logical, and detail-oriented, often attributed to the left hemisphere's dominance in these functions.

Mind Map

A visual diagram that organizes information hierarchically and shows relationships among pieces of the whole, often used for brainstorming or planning.