Research and development and production

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Many competitive programs contain two phrases: research and development, and production. Production profits far exceed R&D profits. The company that wins R&D contract normally becomes a favorite for the production contract, as well as for any follow-on work. How can the dollar figures attached to follow-on work influence the cost package that you submit for the R&D phase? Would your answer change if the man-hours submitted for the R&D phase become the basis for the production phase?

Reference no: EM13784406

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