A local toolmaker makes the best hammers on the market. The head of the hammer costs $19.75 and the handle costs $3.52. It takes 1.4 minutes to assemble the hammer and the hourly cost is $73 for assembly time. The company has fixed operating costs of $27746 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $14085. How many hammers must they sell? Round to the nearest whole number Answer:

A local toolmaker makes the best hammers on the market. The head of the hammer costs $19.75 and the handle costs $3.52. It takes 1.4 minutes to assemble the hammer and the hourly cost is $73 for assembly time. The company has fixed operating costs of $27746 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $14085. How many hammers must they sell? Round to the nearest whole number Answer:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A local toolmaker makes the best hammers on the market. The head of the hammer
costs $19.75 and the handle costs $3.52. It takes 1.4 minutes to assemble the
hammer and the hourly cost is $73 for assembly time. The company has fixed
operating costs of $27746 per month. They sell the hammers for three times their
total variable cost. The company wants to make a monthly profit of $14085. How
many hammers must they sell? Round to the nearest whole number
Answer:

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