Direct materials are a Prod. Cost Manuf Overhead Period Cost

Brad was a professional classical 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 sell Spanish guitars. The guitars sell for $700 each, and the fixed monthly operating costs are as follows: Rent and utilities $810 Wages and benefits to luthier 2,520 Other expenses 480 Brad's accountant told him about contribution margin ratios, and Brad understood clearly that for every dollar of sales, $0.60 went to cover his fixed 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 guitar.) A) It will stay the same. B) It will go down from 12 to 8 units. C) It will go up from 8 to 12 units. D) It will go down from 10 to 8 units.

When developing bad news messages about transactions, what do many firms include in an attempt to repair the relationship?

A) An element of apology B) An explanation of what the customer should now expect C) An explanation of what is being done to resolve the situations D) An offer of a discount on future orders E) An explanation of what type of performance can be expected in the future