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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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