Slate 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$$$700$

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

Rent and utilities

$ $800$$$800$

Wages and benefits to luthier

$$$$2$ comma $5102,510$

Other expenses

$$$$480480$

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

$$$$0\mathrm{.}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$$ units? $($Round answer up to the nearest whole$$ guitar.$)$

Question content area bottom

Part $1$

A$.$

It will go up from

$77$

to

$1212$

units.

B$.$

It will go down from

$1010$

to

$77$

units.

C$.$

It will stay the same.

D$.$

It will go down from

$1212$

to

$77$

units.