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Question
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 9.24 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?
Answer to 2 decimal places and DO NOT include the $ sign. For example answer like 345.67 and not $345.67
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