could you explan why c is right by showing work

Search Phoenix 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 $705, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier Other expenses $810 $2,500 $480 Phoenix's accountant told him about contribution margin ratios, and Phoenix understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. Phoenix is planning to increase the sales price to $780. What impact will the increase in sales price have on the contribution margin ratio? O A. It will stay the same. X. It will decrease to approximately 44.62%. c. It will increase to approximately 63.85%. OD. It will increase to 50.38%