A local toolmaker makes the best hammers on the market. The head of the hammer costs $16.89 and the handle costs $5.52. It takes 1.4 minutes to assemble the hammer and the hourly cost is $85 for assembly time. The company has fixed operating costs of $20371 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $5553. How many hammers must they sell? Round to the nearest whole number

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A local toolmaker makes the best hammers on the market. The head of the hammer costs $16.89 and the handle costs $5.52. It takes 1.4 minutes to assemble the hammer and the hourly cost is $85 for assembly time. The company has fixed operating costs of $20371 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $5553. How many hammers must they sell? Round to the nearest whole number

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