**Article: Understanding Cost Increases in the F-35 Joint Strike Fighter Project**On June 2, 2010, USA Today reported a story from Bloomberg News regarding a significant cost overrun in the development of the F-35 Joint Strike Fighter. Initially, the total project cost was estimated at $232 billion. However, it increased by 65%, bringing the new estimate to $382 billion.The breakdown is as follows:- The total cost of each plane is projected to be $112.4 million, an increase of 81% from the original $62 million.- The production cost per plane rose to $92.4 million, which is about 85% higher than the initial estimate of $50 million.**Questions for Analysis:**a. Verify the arithmetic accuracy of the three reported percentage increases.b. Discuss the reasons why the overall project cost increased by only 65%, despite the per-plane and construction costs increasing by 81% and 85%, respectively. **Key Considerations:**- Consider how fixed and variable costs, economies of scale, and project management strategies might impact total expenditure differently on a large scale project like this.

Given that the original price tag of F-35 is $232 billion.The present cost is $382 billion. The…

3. (5.7.12) On June 2, 2010 USA Today reported a story from Bloomberg News that said that the total price tag for the project to build the new F-35 Joint Strike Fighter would be 65% higher than the original $232 billion estimate. The cost now is estimated to be $382 billion. The total cost of each plane would be $112.4 million, up 81% from the original $62 million. The cost to produce each plane would be $92.4 million, about 85% higher than the original estimate of $50 million. a. Check the arithmetic to see that the three percentage increases reported are correct. b. Can you explain how the project cost can have increased by just 65% when the overall total per plane increased by 81% and the construction cost alone increased by almost 85%?

3. (5.7.12) On June 2, 2010 USA Today reported a story from Bloomberg News that said that the total price tag for the project to build the new F-35 Joint Strike Fighter would be 65% higher than the original $232 billion estimate. The cost now is estimated to be $382 billion. The total cost of each plane would be $112.4 million, up 81% from the original $62 million. The cost to produce each plane would be $92.4 million, about 85% higher than the original estimate of $50 million. a. Check the arithmetic to see that the three percentage increases reported are correct. b. Can you explain how the project cost can have increased by just 65% when the overall total per plane increased by 81% and the construction cost alone increased by almost 85%?

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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**Article: Understanding Cost Increases in the F-35 Joint Strike Fighter Project**

On June 2, 2010, USA Today reported a story from Bloomberg News regarding a significant cost overrun in the development of the F-35 Joint Strike Fighter. Initially, the total project cost was estimated at $232 billion. However, it increased by 65%, bringing the new estimate to $382 billion.

The breakdown is as follows:
- The total cost of each plane is projected to be $112.4 million, an increase of 81% from the original $62 million.
- The production cost per plane rose to $92.4 million, which is about 85% higher than the initial estimate of $50 million.

**Questions for Analysis:**

a. Verify the arithmetic accuracy of the three reported percentage increases.
b. Discuss the reasons why the overall project cost increased by only 65%, despite the per-plane and construction costs increasing by 81% and 85%, respectively.

**Key Considerations:**
- Consider how fixed and variable costs, economies of scale, and project management strategies might impact total expenditure differently on a large scale project like this.

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