Question: Problem 6 - 1 0 ( Algo ) United Research Assoclates ( URA ) had recelved a contract to produce two units of a new

Problem 6-10(Algo)
United Research Assoclates (URA) had recelved a contract to produce two units of a new crulse missile guidance control. The first unit
took 5,000 hours to complete and cost $50,000 in materials and equipment usage. The second took 3,500 hours and cost $40,000 in
materlals and equipment usage. Labor cost is charged at $32 per hour. The company expects "learning" to occur relative to labor and
also the pricing of parts from suppliers.
The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guldance controls.
Use Exhibit 64 and Exhibit 6.5.
a. What will the last unit cost to bulld?
Note: Round your answer to the nearest dollar amount.
Answer is complete but not entirely correct.
b. What will be the average time for the 20 missile guidance controls?
Note: Round your answer to the nearest whole number.
Answer is complete but not entirely correct.
hours
C. What wil the average cost be for guldance control for the 20 in the contract?
Note: Round your answer to the nearest dollar amount.
 Problem 6-10(Algo) United Research Assoclates (URA) had recelved a contract to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!