Estimate the total material cost and the total manufacturing
You’re employed by a prefabricated buildings producer and your first job is to calculate the cost of 100 prefabricated constructions. Every construction has 1,000 sq. ft of flooring area and eight foot ceilings. Historic data present that 70 constructions with 800 sq. ft of flooring area and eight foot ceilings have been produced in 1999.Then the supplies cost for every construction was $25,000 and the cost capability issue is zero.65. Cost index values for 1999 and 2011 are 200 and 289 respectively. The estimated manufacturing cost for the first 1,000 sq. foot construction is $12,000. Use a studying curve of 88% and use the cost of the 50th construction as your normal time for estimating manufacturing cost. Estimate the total material cost and the total manufacturing cost
