M5 - Homework - Appendix 5.1 - Exercise A5

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Central Piedmont Community College *

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110

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Economics

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Feb 20, 2024

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docx

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CHAPTER 5 – OUT OF CLASS ASSIGNMENT INSTRUCTIONS PMT 110 Appendix 5.1 – Exercise A5-1 – Student Worksheet INSTRUCTIONS : Click on the blank lines and type your answers. Save the work as a .DOCX file and upload for grading. A. How many labor hours should the eighth satellite require? Labor Hours for the 8 th Satellite: 51200 B. How many labor hours are required for the whole project of eight satellites? Cumulative Labor Hours for 8 Satellites using an 80% Improvement Curve: 534,600 Labor Hours for Whole Project: 160,380,000 C. What price would you ask for the project? Total Direct Cost for Project: 178,380,000 Profit: 44,595,000 Total Project Cost: 222,975,000 D. Midway through the project your design and production people realize that a 75% improvement curve is more appropriate. What impact does this have on the project? Cumulative Labor Hours for 8 Satellites using a 75% Improvement Curve: 480,200 Difference: 54,400 Difference in Total Labor Hours for Whole Project: 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? Cumulative Labor Hours for 12 Satellites Using a 75% Improvement Curve: 631,500 Cumulative Labor Hours for 8 Satellites Using a 75% Improvement Curve: 480,200 Difference between 12 & 8 Satellites: 151,300 Labor Hours for 4 extra Satellites: 45,390,000 Cost for ½ of Materials: 3,000,000 Total Direct Cost for Project: 48,390,000 Profit: 12,097,500 Total Project Cost: 60,487,500
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