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Title: Luca was a professional classical guitar player until a motorcycle accident left him disabled. After ... Post by: Deprecated on Sep 16, 2016 Luca 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 $700, and the fixed monthly operating costs are as follows:
Rent and utilities $810 Wages and benefits to luthier 2,500 Other expenses 480 Luca's accountant told him about contribution margin ratios, and Luca understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. Luca is planning to increase the sales price to $750. What impact will the increase in sales price have on the contribution margin ratio? A) It will stay the same. B) It will increase to approximately 62.67%. C) It will increase to 53.33%. D) It will decrease to approximately 49.33%. Title: Re: Luca was a professional classical guitar player until a motorcycle accident left him disabled. ... Post by: Tanks on Sep 16, 2016 Content hidden
Title: Re: Luca was a professional classical guitar player until a motorcycle accident left him disabled. After ... Post by: Deprecated on Oct 12, 2016 Will mark this subject solved, thanks
Title: Re: Luca was a professional classical guitar player until a motorcycle accident left him disabled. ... Post by: Minh Minh on Jul 23, 2020 thanks
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