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The second unit took 3,500 hours and used $200,000 worth of materials, equipment usage, and...

Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 3,500 hours and used $200,000 worth of materials, equipment usage, and supplies. Labor is $30 per hour.

a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be?

b. Suppose there was a significant delay between the contracts. During this time, personnel and equipment were reassigned to other projects. Explain how this would affect the subsequent bid.

 

Jul 16 2020 View more View Less

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