Project #40341 - Engineering Economics

1 ) An autoclaves and sterilizers manufacturer has estimated the manufacturing costs of its new product as follows: Cost Elements Cost Rate Direct labor $20 per hour Material $270 per unit Overhead costs 110% of direct labor The company's engineer estimated that the production of the new product has a 88% learning curve applied to labor required, and the time to complete the first unit was 54 labor hours. Assume the time required to complete the 10t h unit and the competitor's price of $2053.44 per unit are used for cost estimation purposes. What is the maximum profit margin for the company to remain competitive? 1

Subject Science
Due By (Pacific Time) 09/17/2014 02:00 am
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