Martin 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 $900, and the fixed monthly operating costs are as follows: rent and utilities $800, wages and benefits to luthier $2,300, other expenses.
Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, $0.55 went to cover his fixed costs, and anything above that point was profit. Martin wishes to earn $54,000 of operating profit each month. Calculate the number of guitars Martin will need to sell to achieve the target.
