What will the average total cost be to complete third order

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Reference no: EM131275699

Atkinson Research Association (ARA) had received a contract to produce five units of new cruise missile guidance control. The first unit took 9000 hours to complete and cost $425000 in materials and equipment usage. The second took 6750 hours and cost $361250 in material and equipment usage. Labor cost charged at $38 per hour. ARA completed the first order and got second order of 17 more units. They completed second order successfully. Assume same learning continues.

The prime contractor has now approached ARA for third order and asked to submit a bid for the cost of producing 68 guidance controls.

What will the total cost to build last unit of the third order?

What will be the average time required in hours to complete the third order?

What will the average total cost be to complete the third order?

Reference no: EM131275699

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