Question
United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours
United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $50,000 in materials and equipment usage. The second took 4,000 hours and cost $37,500 in materials and equipment usage. Labor cost is charged at $25 per hour. The company expects learning to occur relative to labor and also the pricing of parts from suppliers.
The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls. Use Exhibit 4A.5 and Exhibit 4A.6.
What will the last unit cost to build?
Note: Round your answer to the nearest dollar amount.
What will be the average time for the 20 missile guidance controls?
Note: Round your answer to the nearest whole number.
What will the average cost be for guidance control for the 20 in the contract?
Note: Round your answer to the nearest dollar amount.
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