What will the cost of the contract be for first 10 controls

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Reference no: EM13254821

United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The 1rst 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. How long will it take to build the 20 missile guidance controls?
b. What will the cost of the contract be for the first 10 controls?

Reference no: EM13254821

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