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The United Research Associates (URA) had got a contract to manufacture two units of new cruise missile guidance control. The first unit took 4,000 hours to finish and cost $30,000 in materials and equipment usage. The second took 3,200 hours and cost $21,000 in raw materials and equipment usage. Labour cost is incriminated at $18 an hour. The prime contractor has now approached URA and asked to acquiesce a bid for the cost of producing another 20 guidance controls.

A. What will be the last unit cost to build?

B. What will be average time for 20 missile guidance controls?

C. What will be the average cost be for guidance control for 20 in the contract?

Operation Management, Management Studies

  • Category:- Operation Management
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