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

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Definitions:

Real-time Processing

Computing that processes data as it is received, ensuring immediate output and responses.

Data Redundancy

The duplication of data in multiple places within a database or information storage system, often to increase reliability or improve performance.

Normalization

The process of organizing the fields and tables of a database to minimize redundancy and dependency.

Exporting

The act of sending goods or services to another country for sale or trade.