​Funding a Missile Program

question 56

Essay

​Funding a Missile Program
Merowak Missiles is proposing to develop its next generation Democratizer Offensive Weapon System II (DOWS II)for the US military.It expects to have to sink $1 billion into R&D and design,spend $0.5 billion building the tools and production facility that are unique to DOWS II production.It houses these in standard factory floor space that costs $1 million.Each missile has a marginal cost of $2,000.The Pentagon is considering ordering 1 million of these missiles.What is the average cost per missile that Merowak could bid for the contract?

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Definitions:

Mental Health Care

The provision of services aimed at promoting psychological well-being, preventing mental health disorders, and treating mental illness.

Psychoanalytic Therapy

A therapeutic approach developed by Freud that seeks to explore unconscious conflicts and desires that influence current behavior, often through techniques like free association and dream analysis.

Alcoholics Anonymous

A self-help group and fellowship whose members aim to achieve and maintain sobriety through shared experiences, strength, and hope.

Behavior Modification Therapy

A therapeutic approach that seeks to change undesirable behaviors through the use of reinforcement strategies.