When the total variable costs are deducted from total mixedcosts, weobtain: A. variable cost per unit. B. mixed cost per unit. C. total highminuslow costs. D. total fixed costs.

Colin was a professional classical guitar player until his motorcycle accident that left him disabled. After long months oftherapy, he hired an experienced luthier(maker of stringedinstruments) and started a small shop to make and sell Spanish guitars. The guitars sell for$700 and the fixed monthly operating costs are asfollows:

Rent and utilities	$1,210
Wages and benefits to luthier	2,500
Other expenses	480

Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar ofsales, $0.65 went to cover his fixedcosts, and that anything past that point was pure profit. Colin wishes to earn$4,000 of operating profit each month. Calculate the number of guitars Colin will have to sell to achieve the target profit. A. 33 guitars B. 15 guitars C. 18 guitars D. 39 guitars