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

Slate 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

$ 705$705

each, and the fixed monthly operating costs are as follows:

Rent and utilities

$ 810$810

Wages and benefits to luthier

2 comma 5102,510

Other expenses

470470

Slate's accountant told him about contribution margin ratios, and Slate understood clearly that for every dollar of sales,

$0.6060

went to cover his fixed costs, and anything above that point was profit.Slate is planning to increase the sales price to

$ 880$880.

What impact will the increase in sales price have on the breakeven point in units? (Round your answer up to the nearest whole guitar.)

A.It will go down from

99

to

77

units.

B.It will go down from

1313

to

88

units.

C.It will go up from

88

to

1313

units.

D.

It will stay the same.

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