A Company Is Preparing a Bid on a Government Contract

question 80

Multiple Choice

A company is preparing a bid on a government contract for 40 units of a certain product. The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours.Approximately how long will it take to produce the 25th through thirtieth units?

• A)23 hours
• B)49 hours
• C)29 hours
• D)38 hours
• E)It is impossible to say without additional information.

---

Definitions:

Operating Expenses

Recurring expenses related to the core operations of a business, excluding the cost of goods sold, such as rent, utilities, and salaries.

Net Income

The net income a business generates once all costs and taxes are deducted from its total revenue.

Units Sold

The total quantity of products sold within a specific timeframe.

Product Cost

The total expenses incurred to produce a product or service, including direct materials, labor, and manufacturing overhead costs.