Lockheed Martin Corporation is analyzing its aircraft manufacturing costs using different cost accounting approaches:

• Requirements:
  • Calculate the Marginal Cost per additional aircraft produced:
    • Variable Costs: $200,000,000
    • Fixed Costs: $100,000,000
• Apply Standard Cost Accounting to establish cost targets for aircraft components.
• Evaluate the benefits of Activity-Based Costing in allocating engineering and testing costs.
• Discuss how each costing method influences pricing and profitability in aerospace manufacturing.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$200,000,000
Fixed Costs	$100,000,000
Total Cost	$300,000,000