... 14 hours of skilled labor and 15 hours of unskilled labor, which culminates into labor costs per guitar are $264. Therefore, the total cost for our handmade guitars range from $544 - $677. Our policy is to list price our guitars with 75% margins, which is standard for these types of instruments, and typically sell the guitars at 60% margin (markup). This puts our guitars selling at $870 - $1,084. We manage the small storefront with min/max inventory levels of each guitar based on historical sales over the past year. These inventory levels are further managed with a ceiling of $10,000 (approximately one month historical income from selling an average of 22 guitars per month) based on total costs per guitar in the store. With the average guitar costing $610, there are about 16 guitars in the store at any given time. To maintain sales of 22 guitars per month, ...

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