Question
You have been asked to estimate the total costs of (155) prefabricated structures. Each structure provides (1,500) square feet of floor space, with 8-feet ceilings.
You have been asked to estimate the total costs of (155) prefabricated structures. Each structure provides (1,500) square feet of floor space, with 8-feet ceilings. In 2003, you produced (75 ) similar structures consisting of the same materials and having the same ceiling height, but each provided only 800 square feet of floor space. Assume the total costs have only 2 cost components material costs AND manufacturing costs. The total material cost for (75) similar structures in 2003 was US$ 1,750,000, and the cost capacity factor is (0.65 + (5/100)). The cost index values for 2003 and 2021 are 200 and 589, respectively. The estimated manufacturing costs for the first (1,500) square-foot structure is US$ (125,000). Assume a learning curve of (93)% learning rate. For cost estimation purpose, just use the cost of the 50th structure for estimating the manufacturing cost for one prefabricated structure in 2021. | |
(a) | Estimate the total material costs in 2021. Calculate the material costs for one structure first. Round off your final answer to the nearest hundred. |
(b) | Estimate the total manufacturing costs in 2021. Calculate the manufacturing costs for one structure first. Round off your final answer to the nearest hundred. |
(c) | Estimate the total costs. Round up your final answer to the nearest hundred. |
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