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United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 3,200 hours and cost $21,000 in materials and equipment usage. Labor cost is charged at $18 per hour.
The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls.
a. What will the last unit cost to build?
b. What will be the average time for the 20 missile guidance controls?
c. What will the average cost be for guidance control for the 20 in the contract?
A company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day.
Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, illustrate what should Johnson estimate time also parts costs to be for the dozen units.
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Which of the following generally applies the same criteria to acceleration as to initial unit determination?
How many units are needed to break even if each completed unit has a value of $100?
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