a. What will the last unit cost to build? (Round your answer to the nearest doll
ID: 388098 • Letter: A
Question
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 $
Improvement Curves: Table of Cumulative Values eXcel 2.045 2166 2 2.384 2.502 2.623 27482.92 2.105 2578 2.710 2948 3.1 3.12 335 3556 3.774 4339 4.82 2.758 216 3.1 96 3459 3.730 4.031 6.938 8574 7.281 72 .11 7.116 7991 .55 3.432 3847 4.300 4.002 5.346 3.013 311 4831 5509 315 5.879 8.972 8.245 971 1333 20 6.11 22 5.379 12.4U 14.51 1.13 7,019 9380 12.31 7.7 21.10 35 6478 9.108 10.13 12.72 15.84 19.29 2381 28.98 1.19 21.43 24 45 7.13 8.114 162 1477 18.8 2350 237 384 10.30 1357 17672287 2941 57 11.13 14.74 1.43 2547 3317 42.87 15.52 18.53 22. 17.79 24.10 49.05 82.25 3.34032 53.14 100 539 1303 3265 43,75 14 78.59 50. 6703 on.7 1508 21 200 12.09 250 13.0 19.20 20.5 42.05 8147 3 129 72 300 13.81 7.81 31.34 46A4 66 102.2 1487 212.2 17.55 2548 36.80 52.72 74,79 1050 45.7 400 15.142344 5 2288 3108 403.3 3045 4653 500 16.26 2560 10.58 63.60 885 151 0.97 7.21 44.47 74.2 287.1 1,20021.30 350 ,00022.23 1,000 24.08 4300 78.85 13. 23 40.9 8788 1116 2,000 24.83 4484 00.9% 2,500 26,53 7 3,000 27.99 62 ne.90 183.7 a352 508.9 1047 144. 254.4 38.9 7423 1230 165.0 295.1Explanation / Answer
We will use Learning curve table to arrive at required result .
Given are following details :
Time of completion of first unit = 5000 hours
Time of completion of second unit = 4500 hours
Therefore , Learning rate for production time = 4500/5000 x 100 = 90 %
Cost of first unit = $30,000
Cost of second unit = $24,000
Therefore, Learning rate for cost of material = 24,000/30,000 x 100 = 80 %
To know details of cost of producing another 20 units, we need to find out total cost of 2 ( initial number of units ) + 20 ( new units ) = 22 units
Labour cost = $25 / hour
Therefore, Labour cost = $78137.25
Material cost required for last unit I.e. 22nd unit = $11090.67
Last unit cost to build
= Labour cost + Material cost
= $78137.25 + $11090.67
= $89227.92( $89228 rounded to nearest whole number )
Last unit cost to build = $89228
Total time required for producing 2 units = 9500 hours
Therefore , total time required for 20 missile guidance control
= 79311.95 – 9500 hours
= 69811.95 hours
Average time for 20 missile guidance control
= 69811.95/20
= 3490.59 hours ( 3491 hours rounded to nearest whole number )
Average time for 20 missile guidance control = 3491 hours
= $25 / hour x Total time required for 20 missile guidance control
= $25 x 69811.95
= $1745298.75
Total material cost for 22 units = $336896.96
Total material cost for first 2 units = $54000
Therefore , total material cost to build 20 missile guidance control
= $336896.96 - $54000
= $282896.96
Total cost of making 20 missile guidance control
=( Total labour cost + Total material cost ) of making 20 missile guidance control
= $1745298.75 + $282896.96
= $2028195.71
Average cost of guidance control for the 20 in the contract
= Total cost of making 20 missile guidance control / 20
= $2028195.71/20
= $101409.78 ( $101410 rounded to arrest whole number )
Average cost for 20 guidance control in the contract = $101410
Last unit cost to build = $89228
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