Aircraft Manufacturing Cost Analysis

Data:

• Fixed Manufacturing Costs: $25,000,000
• Variable Manufacturing Costs per Aircraft: $70,000,000
• Aircraft Produced: 10
• R&D Costs per Aircraft: $10,000,000

Requirements:

1. Calculate the total manufacturing costs, including R&D costs.
2. Determine the cost per aircraft.
3. Analyze the effect of producing 2 additional aircraft on total and per-aircraft costs.
4. Discuss the importance of managing R&D costs.
5. Recommend strategies for optimizing production efficiency.
6. Evaluate the potential cost savings from implementing lean manufacturing principles.
7. Assess the impact of cost control measures on the company's competitive advantage.