Advanced Weapon Systems (AWS) is in a contract to manufacture and deliver 1,200 units of certain classified military weapon to the US Naval Air Systems Command (NAVAIR).NAVAIR expects the manufacturing and deliveries to be spread over 6 years as follows.

50 units by the end of 2021

110 units by the end of 2022

140 units by the end of 2023

200 units by the end of 2024

300 units by the end of 2025

400 units by the end of 2026

AWS will bill NAVAIR at the end of each of the year for the delivery of the units.Thus, NAVAIR will receive 6 invoices - one each at the end of years 2021 thru 2025.The invoices will be for charges in the previous year and should be available by late January.So, as an example, the invoice for 2021 will show charges for 2021 and generated by end of January 2022.

AWS has completed a simulation of the pilot run and determined that

The material cost for the first unit is $208,300.That cost is applicable for year 1 of production - year 2021.That cost is expected to increase at an average rate of 4.2% per year.

The average labor required to manufacture the first unit is 9,000 hours

Labor wages in 2021 = $135 per hour.

The union contract stipulates that the wage rate will be adjusted at the beginning of the year based on expected national labor inflation rate for the year.AWS management expects the labor inflation rate to be 3% per year.

The Labor leaning rate is 85%

The pricing structure for purchased material will not follow any learning curve.

AWS has contract to bill the government at cost plus 10% of total cost.

What is the expected amount to be billed at the end of each of the five years, along with the total project cost (labor + material).

What is the average expected total unit cost of the weapon?