2.75 points Save Anwer Brad was a professional dassical guitar player until a motorcycle accident...

90.2K

Verified Solution

Question

Accounting

image
2.75 points Save Anwer Brad was a professional dassical 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 sel Spanish guitars. The guitars sell for $700 each, and the fixed monthly operating costs are as follows Rent and utltes Wages and benefits to luther JOther expenRs $810 2520 480 Brad's accountant told him about contribution margin ratios, and Brad understood dearty that for every dollar of sales, 10.60 went to cover his fxed costs, and anything above that point was profit. Brad is planning to increase the sales price to $820. What impact will the increase in sales price have on the breakeven point in units? (Round your answer up to the nearest whole gutar) Rwil go down from 10 to 8 units It will go up from 8 to 12 units. It will stay the same O will go down from 12 to 8 units

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students