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 3,500 hours and used $ 200,000 worth of materials, equipment usage, and supplies. Labor is $ 30 per hour.
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?
b. Suppose there was a significant delay between the contracts. During this time, personnel and equipment were reassigned to other projects. Explain how this would affect the subsequent bid.

  • CreatedApril 09, 2014
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