Columbus Shipbuilding Ltd

question 81

Essay

Columbus Shipbuilding Ltd. is preparing a bid on a contract to supply 8 small vessels. It is facing two issues in preparing its estimates. First, due to volatility in the market place there is uncertainty regarding the cost of direct materials. Second, it recognizes that there will be improvements in labour productivity during the contract.
Columbus has estimated the following probability distribution for its direct materials costs:
In estimating the direct labour costs, Columbus has predicted a 90% cumulative average time learning curve. The time required to produce the first vessel is estimated at 4,000 hours. Direct labour costs average $68 per hour.
Manufacturing overhead is applied at the rate of 250% of direct labour costs. The bid price will be established to permit a 40% gross margin.
Required:
Prepare the total bid price for the order.

Understand the concepts of SWOT analysis, BCG Matrix, and their applications in strategic planning.

Appreciate the role of analytics and strategic tools in formulating marketing strategies.

Understand the distinction between natural and formal concepts and their boundaries.

Learn the role of the fusiform face area and parahippocampal place area in perception and mental imaging.

---

Definitions:

Mating

The pairing of individuals for reproductive purposes, often involving complex behaviors in animals, including humans.

Biological Approach

A perspective in psychology that emphasizes the importance of physical processes in the brain and other organs in understanding behavior and mental processes.

Heredity and Environment

The two main factors that contribute to the development of an individual’s physical and psychological traits, with heredity referring to genetic inheritance and environment to life experiences and conditions.

Human Genome

The human genome is the complete set of nucleic acid sequences for humans, embodying all the hereditary information encoded in DNA, including all the genes.