CAN SOMEONE PLEASE HELP WITH THE FOLLOWING, I USE THESE SAMPLE PROBLEMS TO STUDY

Question

CAN SOMEONE PLEASE HELP WITH THE FOLLOWING, I USE THESE SAMPLE PROBLEMS TO STUDY, IF YOU COULD SHOW DETAILS AND EXPLANATIONS I WOULD GREATLY APPRECIATE IT!! THANK YOU SO MUCH IN ADVANCE!!

Problem 3 (based on problem 9 on page 127 of “The Core” 3erd edition)

United Research Associates (URA) received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,800 hours to complete and cost $35,000 in materials and equipment usage. The second took 4,200 hours and cost $20,000 in materials and equipment usage. Labor cost in 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 be the average cost per guidance control for the 20 in the contract?

Explanation / Answer

Time to produce first unit = 4800 hours

Time to produce 2nd unit = 4200 hours

Hence, Learning rate for Time taken = 4200/4800 x 100 = 87.5%

Material and equipment required for the first unit = $ 35,000

Material and equipment required for the second unit = $20,000

Hence , Learning Rate = 20,000/35,000 x 100 = 57.14 %

We will use Standard Learning curve table for finding out subsequent values

While producing another 20 units, last unit produced will be 22nd unit.

As per Learning curve table :

For time to produce 1st unit = 4800 hours and Learning rate = 87.5%

Time to produce 22nd unit ( LAST UNIT ) = 2646.25 hours

Hence, total labour cost for last unit to build ( @$18/ hour ) = 18 x 2646.25 = $47632.5

For material and equipment cost of 1st unit = $35,000 and Learning rate = 57.14%,

Material and labour cost for last (22nd) unit as per Learning curve table = $2885.09

Therefore, total cost for last unit = $47632.5 + $2885.09 = $50517.59

LAST UNIT COST TO BUILD = $50517.59

Taking help of Learning curve table ,

Total time for first 22 units = 69959.02 hours

Total time for first 2 units = 9000 hours

Therefore, total time for 20 missile guidance control = 69959 – 9000 = 60959 hours

Hence, Average time for each of 20 missile guidance control = 60959/20 = 3047.95 hours

AVERAGE TIME FOR 20 MISSILE GUIDANCE CONTROL = 3047.95 HOURS EACH

Total labour cost ( @$18/ hour) for 20 missile guidance control = $18/ hour x 60959 hours = $1097262

Again, taking help of learning curve table:

Total cost of material and equipment for first 22 units = $168990

Total cost of material and equipment for first 2 units = $55000

Thus, Total material and equipment cost for 20 missile guidance control

= $168990 - $55000

= $113990

Hence, total cost for 20 guidance control = $1097262 + $113990 = $1211252

Therefore , average cost per guidance control = $1211252/ 20 = $60562.6

AVERAGE COST PER GUIDANCE CONTROL FOR 20 IN THE CONTRACT = $60562.6

LAST UNIT COST TO BUILD = $50517.59

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