Question: Brad was a professional classical guitar player until a motorcycle accident at left him disabled. After long months of therapy, he hired an experienced luthier

Brad was a professional classical guitar player until a motorcycle accident at 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 each, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier Other expenses $810 2,520 480 Brad's accountant told him about contribution margin ratios, and Brad understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. Brad is planning to increase the sales price to $880. What impact will the increase in sales price have on the breakeven point in units? (Round vour OA. O B. C. 0 D. It will go down from 10 to 7 units. It will stay the same. It will go down from 11 to 9 units. It will go up from 9 to 1 1 units
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