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A Local Toolmaker Makes the Best Hammers on the Market

Question 4

Multiple Choice

A local toolmaker makes the best hammers on the market. The head of the hammer costs $12.11 and the handle costs $4.37. It takes 1.4 minutes to assemble the hammer and the hourly cost is $90.00 for assembly time. The company has fixed operating costs of $22 310 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $5000. How many hammers must they sell?


A) 796
B) 735
C) 776
D) 766
E) 768

Correct Answer:

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