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Zeke Was a Professional Classical Guitar Player Until a Motorcycle

Question 97

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

Correct Answer:

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