Refer to Exercise A5.1 in your textbook. Assuming that 90% improvement curve is more appropriate for theentire project and desired profit is 20% to win over the competition, the total price paid for 90 units is:Add your answerInteger, decimal, or E notation allowed World Satellite Telephone Exchange ProjectNSDC has a contract to produce eight satellites to support a worldwidetelephone system (for Alaska Telecom, Inc.) that allows individuals to use asingle, portable telephone in any location on earth to call in and out. NSDCwill develop and produce the eight units. NSDC has estimated that the R&Dcosts will be NOK (Norwegian Krone) 12,000,000. Material costs areexpected to be NOK 6,000,000. They have estimated that the design andproduction of the first satellite will require 100,000 labor hours, and an 80percent improvement curve is expected. Skilled labor cost is NOK 300 perhour. Desired profit for all projects is 25 percent of total costs.A. How many labor hours should the eighth satellite require?ce.

The World Satellite Telephone Exchange Project involves NSDC developing and producing eight…

Answered: Refer to Exercise A5.1 in your…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle, Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 75,000 $100,000 $16.00 Flexible Manufacturing System (FMS) 75,000 $225,000 $14.00 Dedicated Machine (DM) 75,000 $450,000 $13.75 Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited…
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Case Study: Abu Dhabi International Book Fair and Event Management Established in 1983, from an event first held in 1981, the Abu Dhabi International Book Fair (ADIBF) is organized by the royal family (via Abu Dhabi Tourism & Culture Authority – ADTCA – and KITAB) and held at the Abu Dhabi National Exhibition Centre (ADNEC); bringing together some 904 exhibitors from around 54 countries, two-thirds of which will come from Arab countries. The event showcases over half a million titles in some 33 languages and saw a 10 percent increase in participants – it has been held annually since 1993, and the 2017 event was credited to have attracted over 300,000 visitors. The organizers of the ADIBF took a stand at the Frankfurt Book Fair and hosted several events. This was all aimed at enhancing the profile of the ADIBF as well as raising awareness and networking amongst leading exhibitors, with a view to further enhancing the ADIBF. KITAB wants to confirm the ADIBF as a 'hub' event within…
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World Satellite Telephone Exchange Project NSDC has a contract to produce eight satellites to support a worldwide telephone system (for Alaska Telecom, Inc.) that allows individuals to use a single, portable telephone in any location on earth to call in and out. NSDC will develop and produce the eight units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12,000,000. Material costs are expected to be NOK 6,000,000. They have estimated that the design and production of the first satellite will require 100,000 labor hours, and an 80 percent improvement curve is expected. Skilled labor cost is NOK 300 per hour. Desired profit for all projects is 25 percent of total costs. E. Near the end of the project, Deutsch Telefon AG requests a cost estimate for four satellites identical to those you have already produced. What price will you quote them? Justify your price.
Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 20 units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the U.S. Department of Defense (DoD). Testing of the laser units has shown that they are effective defense weapons, and if redesigned to add portability and easier field maintenance, the units could be truck-mounted. The DoD has asked LTI to submit a bid for 100 more units. The 20 units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit 6.4 and Exhibit 6.5. UNITNUMBER COST($ MILLIONS) UNITNUMBER COST($ MILLIONS) 1 $ 13.0 11 $ 2.2 2 7.5 12 2.1 3 5.8 13 1.9 4 4.5 14 1.9 5 4.0 15 1.7 6 3.5 16 1.7 7 3.1 17 1.5…
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