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You are an experienced machinist with a small tool shop. You have been asked to submit a bid to produce twelve (12) special clamps for a new die that is under construction. You estimate that the material costs (metal and fasteners) for each clamp are $150.00. You also estimate that 9.03 labor hours are needed to produce the first clamp. The value of your labor is $50/hour.
Your potential customer is receptive to your bid from the previous question, but is hesitant to award you the order because the average price per clamp that you bid is 5% higher than his target price. You respond to the customer that if they would increase their order from 12 clamps to x clamps, you could beat his target price. Find x. What is your new AVERAGE PRICE PER CLAMP ?
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