Answer:
a. 51,200
b. NOK 160,380,000)
c. 222,975,000
d. 16,320,000
e. 60,487,500
Explanation:
A. How many labor hours should the eighth satellite require? 100,000 labor hours x .512 = 51,200 labor hours for the 8thunit
B. How many labor hours for the whole project of eight satellites? 100,000 labor hours for 1stunit x 5.346 = 534,600 total for 8 units (534,600 hours x NOK 300 = NOK 160,380,000)
C. What price would you ask for the project? Why? Labor (534,600 hrs x NOK 300) = NOK 160,380,000R&D = NOK 12,000,000Material = NOK 6,000,000Total = NOK 178,380,000 x 1.25 profit NOK 222,975,000
D. Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What impact does this have on the project? 80% improvement = 534,600 labor hours 75% improvement = 480,200 labor hours Difference = 54,400 labor hours x NOK 300 = NOK 16,320,000
E. Near the end of the project Deutsch Telefon AG has requested a cost estimate for four satellites identical to those you have already produced. What price will you quote them? Justify your price. 12 units= 100,000 lhrs for first unit x 6.315 (75%)=631,500 lhrsFirst 8 units= 100,000 x 4.802 (75%) =480,200 lhrsDifference=151,300 lhrsAdditional 4 units= 151,300 lhrs x NOK 300 =NOK 45,390,0001/2 material of 6,000,000 =NOK 3,000,000Total direct costs=NOK 48,390,0001.25 profit=NOK 60,487,500
