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: 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:
Verified
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