Your company just won the contract for a new bizjet nacelle system. The Business Development team signed a Memorandum of Agreement (MOA) with the customer that included a sales price of $764,000 per nacelle. The sales volume for this contract is 792 nacelles and the peak manufacturing rate is 6 nacelles per month with production starting in 2026. Table 1 provides the target cost by major component. Table 1 Nacelle Recurring Cost Targets and Forecast Recurring Cost Component Current Forecast Target Inlet $54,000 $60,275 Fwd bulkhead $9,720 $10,600 Aft Bulkhead $7,560 $8,600 Lipskin $12,960 $14,375 Anti-ice $23,760 $26,700 Thrust Reverser $204,000 $229,400 Fixed structure $65,280 $74,000 Side beams $16,320 $19,000 Cascades $14,280 $15,000 Actuation system $57,120 $65,000 Longerons $24,480 $26,400 Other $26,520 $30,000 Fan Cowl $72,000 $72,800 Panels $18,720 $18,600 Latches $12,240 $12,500 Access panels $18,000 $18,300 Hold-open rods $7,920 $8,000 Seals $12,960 $13,400 Other $2,160 $2,000 EBU $220,000 $215,000 Exhaust $85,000 $86,000 TOTAL $635,000 $663,475