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:

Fear-based

Describing actions or decisions motivated by fear, often leading to precautionary or defensive behavior to avoid negative outcomes.

Moderate Levels

Degrees or extents of something that are considered to be within a middle or average range, avoiding extremes.

High Levels

Refers to an elevated state or degree of any measurable variable, quality, or condition.

Expertise

Specialized knowledge or skill obtained from extensive experience or training in a particular field.