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:

Free Recall

A process in memory recall where information is retrieved without being cued, recalling events or facts spontaneously.

Serial Recall

The process of recalling items or events in the order in which they occurred or were presented.

Savings

Monetary funds that are set aside or stored for future use or emergencies, typically earning interest in a financial institution.

Recognition

The cognitive process of identifying previously encountered objects, events, or people, indicating the ability to remember them.