Ajax was a professional classical guitarist 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​, and the fixed monthly operating costs are as​ follows:   Rent and utilities $700 Wages and benefits to luthier 2,400 Other expenses 483   ​Ajax's accountant told him about contribution margin​ ratios, and Ajax understood clearly that for every dollar of​ sales, ​$0.70 went to cover his fixed​ costs, and anything above that point was profit.     How many guitars does Ajax need to sell each month to break​ even? (Round your answer up to the nearest whole​ guitar.)   A. 6 guitars   B. 8 guitars   C. 7 guitars   D. 3 guitars

Suppose you are the human resource manager for a cellular phone company with 700 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $468 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged  1 4 %  of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $600,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new…

Three years ago, Dorothy Taylor started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Dorothy sells the baskets for $33 each, and her variable costs are $23 per basket. She incurs $11,600 in fixed costs each year. (a) How many baskets will Dorothy have to sell this year if she wants to earn $28,000 in operating income? (Round answer to O decimal places, eg. 5,275) baskets

Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen. Tom's total costs equal: O $37,000 O $59,000 O $40,000 O $25,000

Rae Dunn makes coffee cups and salad plates out of pottery. It can take her 6 minutes to produce a coffee cup and 3 minutes to produce a salad plate. When making the cups, she will need 34 lb of clay. To make a plate, she will need one lb of clay. She only wants to spend 20 hours a week making the cups and plates. She only found that she had 250 lbs of clay for this project. Rae Dunn does make a profit of $2.00 for each coffee cup and $1.50 for each plate. Let's help Rae Dunn determine what her maximum profit will be.