United Research Associates (URA) had received a contract to produce two units of

Question

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 $22,500 in materials and equipment usage. Labor cost is charged at $20 per hour.

     The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls. Use Exhibit 6.4 and Exhibit 6.5.  

a. What will the last unit cost to build? (Round your answer to the nearest dollar amount.)    

Cost of last unit            $

b. What will be the average time for the 20 missile guidance controls? (Round your answer to the nearest whole number.)

    

Average time hours

c. What will the average cost be for guidance control for the 20 in the contract? (Round your answer to the nearest dollar amount.)

Average cost            $

Explanation / Answer

Solution :

A : Cost for last unit : $ 809

B : Average time hours for 20 : 633 hours

C : Average cost for 20 : 16017

Unit Hours Material and Equipment cost Labor Cost Total Cost 1 2560 16875 51200 68075 2 2048 12656 40960 53616 3 1638 9492 32768 42260 4 1311 7119 26214 33334 5 1049 5339 20972 26311 6 839 4005 16777 20782 7 671 3003 13422 16425 8 537 2253 10737 12990 9 429 1689 8590 10279 10 344 1267 6872 8139 11 275 950 5498 6448 12 220 713 4398 5111 13 176 535 3518 4053 14 141 401 2815 3216 15 113 301 2252 2552 16 90 226 1801 2027 17 72 169 1441 1610 18 58 127 1153 1280 19 46 95 922 1017 20 37 71 738 809

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