You are an experienced machinist with a small tool shop. You have been asked to submit...

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You are an experienced machinist with a small tool shop. You have been asked to submit a bid to produce 12 special clamps for a new die that is under construction. You estimate that the material costs (metal and fasteners) for each clamp are $150.00. You also estimate that 12.4 labor hours are needed to produce the first clamp. The value of your labor is $50/hour. From similar orders in the past, you estimate that there is a 90% learning curve for this type of work. Using this information, what is the total bid (cumulative price for 12 clamps) you should submit if you charge a 20% markup on material and you wish to recoup your labor costs? You are an experienced machinist with a small tool shop. You have been asked to submit a bid to produce 12 special clamps for a new die that is under construction. You estimate that the material costs (metal and fasteners) for each clamp are $150.00. You also estimate that 12.4 labor hours are needed to produce the first clamp. The value of your labor is $50/hour. From similar orders in the past, you estimate that there is a 90% learning curve for this type of work. Using this information, what is the total bid (cumulative price for 12 clamps) you should submit if you charge a 20% markup on material and you wish to recoup your labor costs?

Answer rating: 100% (QA)

To calculate the total bid that you should submit you need to account for the costs of materials lab... View the full answer