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Real-Life Math

Sometimes as a guitar maker, you are forced to slash prices to remain competitive and keep hold of your piece of the "profits pie." Such is the case today. Music school owner John Cartney has placed a big order with you. It could quite literally make or break your season.

"Besides the concerns of basic business, math is not the biggest player with me," says guitar maker Oskar Graf. "Sure, if your approach involves science and engineering, you will do well with the basic math and physics of building a guitar. Really, though, business is the math I am really interested in as a guitar maker."

Here's your regular price list:

Types

  1. Steel or nylon string satin finished solid walnut back, sides and neck with a solid spruce or cedar top (wood fiber binding on top) = $929.99
  2. Steel or nylon string clear, burst or color finished solid mahogany back and sides with a solid spruce or cedar top (white plastic binding or wood binding on clear) and a solid maple neck = $1,099.99
  3. Steel or nylon string clear or burst finished solid rosewood back and sides with a solid spruce or cedar top (mahogany binding) and a satin finished solid walnut neck = $1,139.99

Extras

  • 12-string = $299.99
  • Hard shell case = $99.99

If Cartney wants 3 of each guitar -- 2 of them 12-stringed and each of the 9 coming in a hard shell case -- what is the final bill, with 11 percent tax on top? Now, slash that price by 5 percent. This little discount is what actually sealed the deal with Cartney in the first place.