Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Deprecated Deprecated
wrote...
Go to Answer
Posts: 2784
Rep: 104 0
7 years ago
Joshua was a professional classical guitarist 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   $600
Wages and benefits to luthier   2,300
Other expenses   479

Joshua's accountant told him about contribution margin ratios, and Joshua understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. 

How many guitars does Joshua need to sell each month to break even? (Round your answer up to the nearest whole guitar.)
A) 3 guitars
B) 8 guitars
C) 7 guitars
D) 5 guitars
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
Read 594 times
2 Replies
Replies
Answer verified by a subject expert
.unplugged..unplugged.
wrote...
#1
Top Poster
Posts: 1272
Rep: 267 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Deprecated Author
wrote...
#2
7 years ago
Makes perfect sense, thx
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1288 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 266
  
 778
  
 675
Your Opinion
What's your favorite math subject?
Votes: 293
Previous poll results: Which is the best fuel for late night cramming?