Question

The delivered equipment cost for setting up a production and assembly line for high-sensitivity, gas-damped accelerometers is $650,000. If the direct cost and indirect cost factors are 1.36 and 0.31, respectively, and both factors apply to delivered equipment cost, the total plant cost estimate is approximately:______

a. $2,034,500
b. $1,815,500
c. $1,735,500
d. $1,183,000

Answer 1

c. $1,735,500

Step-by-step explanation:

The computation of the estimation of the total plant cost is shown below:

= Delivery equipment cost × (1 + 1.36 + 0.31)

= $650,000 × 2.67

= $1,735,500

Hence, the estimation of the total plant cost is $1,735,500

Therefore the correct option is c

We simply applied the above formula so that the correct value could come

And, the same is to be considered