Question: Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on
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 3,250 hours and used $187,500 worth of materials, equipment usage, and suppiles. Labor is $25 per hour. The company expects "learning" to occur relative to labor and also the pricing of parts from suppliers. Use Exhibit 6.5 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? Cost for 10 more units b. Suppose there was a significant delay between the contracts. During this time, personnel and equipment were reassigned to other projects. What would the new bid be? Now bid
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