Lambda Computer Products competed for and won a contract to produce two prototyp
ID: 2732990 • Letter: L
Question
Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 4,250 hours and used $237,500 worth of materials, equipment usage, and supplies. Labor is $20 per hour. Use Exhibit 6.5. a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be?
Cost for 10 more units $_______
Explanation / Answer
Answer:
Therefore, Labor cost for 10 more units = 5,000(6.394)(20) = $639400
Therefore, Material cost for 10 more units = 250,000(8.67) = $2,167,500
Total Cost = $639400+ $2,167,500= $2806900
Labor: LR 4250/5000=85% From Exhibit 6.5 12 units 8.244 -2 units 1.85 6.394Related Questions
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