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  • Mason Instrument Inc

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    Rahul Niranwal
    57 views8 pages
    The document summarizes three bids from Mason Instrument Inc. to the Navy for manufacturing various quantities of units. The first bid was for 50 units at a cost per unit of $188,804, higher than Eldridge's cost per unit of $240,000 for 1,000 units. The second bid details costs for 2,000, 1,500 and 1,000 units, with Mason's costs being lower than Eldridge's adjusted costs. The third bid provides costs from Mason and Eldridge for quantities from 250 to 3,000 units, with Mason's costs generally being lower than Eldridge's.

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    The document summarizes three bids from Mason Instrument Inc. to the Navy for manufacturing various quantities of units. The first bid was for 50 units at a cost per unit of $188,804, higher than Eldridge's cost per unit of $240,000 for 1,000 units. The second bid details costs for 2,000, 1,500 and 1,000 units, with Mason's costs being lower than Eldridge's adjusted costs. The third bid provides costs from Mason and Eldridge for quantities from 250 to 3,000 units, with Mason's costs generally being lower than Eldridge's.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    57 views8 pages

    Mason Instrument Inc

    Uploaded by

    Rahul Niranwal
    The document summarizes three bids from Mason Instrument Inc. to the Navy for manufacturing various quantities of units. The first bid was for 50 units at a cost per unit of $188,804, higher than Eldridge's cost per unit of $240,000 for 1,000 units. The second bid details costs for 2,000, 1,500 and 1,000 units, with Mason's costs being lower than Eldridge's adjusted costs. The third bid provides costs from Mason and Eldridge for quantities from 250 to 3,000 units, with Mason's costs generally being lower than Eldridge's.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 8

    Mason Instrument Inc

    Group No-5
    Alok Pratap Singh (23NMP05)
    Mohan Murari (23NMP19)
    Sudhansu Senapati (23NMP31)
    Context
    • Total spending projection by Navy $2.3-3 billion
    • Jan 1984: Elridge supplied 1000 units @ 240,000
    • MPD price for 50 units is $ 188, 804 (Tooling cost $ 5.5
    million by Government)
    • Three bids by Mason
    • 2000 units - $ 135830 & 250 units a month capacity
    increase. Tooling cost $ 6 million by Govt. and $ 9
    million would be borne by MPD
    • 1500 units - $ 142650 & 200 units capacity increase,
    Govt. and company $ 5,625,000 to invest in tooling.
    • 1000 units - $ 150056 & no additional capacity
    increase, No investment in tooling
    First bid

     
    Mason
     

    Tooling
    Cost per Cost per Total Profit/Lo Over Total
    Units unit unit Cost Price ss budget Profit

    -
    50 188804 190000 378804 188804 -190000 -47527 11876350

       
    Eldridge
    Tooling
    Cost per Cost per Total Profit/Lo Over Total
    Units unit unit Cost Price ss budget Profit

    1000     0 240000 240000 0 0


    Second bid
    Mason
    Tooling
    Cost per Cost per Total Profit/L Overbudg Total
    Units unit unit Cost Price oss et Profit
    2000 122247 4500 126747 135830 9083 139495 -7330000
    1500 128385 3750 132135 142650 10515 139495 4732500

    1000 135050 0 135050 150056 15006 139495 10561000

    Eldridge
    Assuming 5% price increase due to non vendor saving
    Tooling
    Cost per Cost per Total Profit/Lo Total
    Units unit unit Cost Price ss Profit
    2000 128359 4500 132859 136280 3421 6841300
    1500 134804 3750 138554 142650 4096 6143625

    1000 141803 0 141803 187570 45768 45767500


    Cost to NavSea
    Mason Eldrige
    Cost per
    Units Price Total Cost Units Price Total Cost unit
    2000 135830 271660000 1000 187570 187570000 153077
    1500 142650 213975000 1500 142650 213975000 142650
    1000 150056 150056000 2000 136280 272560000 140872
    Third bid
    Mason
    Tooling
    Cost per Cost per
    Units unit unit Total Cost Price Profit/Loss Total Profit
    250 168936 0 168936 187706 18771 3993750
    500 165341 0 165341 183713 18371 7987500
    750 161747 0 161747 150056 17972 11981250
    1000 158153 0 158153 175725 17573 15975000
    1250 154558 0 154558 171731 17173 19968750
    1500 150964 0 150964 167738 16774 23962500
    1750 147369 0 147369 163744 16374 27956250
    2000 143775 0 143775 159750 15975 31950000
    2250 140181 3750 143931 159506 15576 35943750
    2500 136586 3750 140336 155513 15176 39937500
    2750 132992 3750 136742 151519 14777 43931250
    3000 129398 3750 133148 147525 14378 47925000
    Elderich
    Tooling
    Cost per Cost per
    Units unit unit Total Cost Price Profit/Loss Total Profit
    250 168936 0 168936 186270 17334 3688125
    500 165341 0 165341 182307 16965 7376250
    750 161747 0 161747 150056 16597 11064375
    1000 158153 0 158153 174380 16228 14752500
    1250 154558 3750 158308 174167 15859 18440625
    1500 150964 3750 154714 170204 15490 22128750
    1750 147369 3750 151119 166241 15121 25816875
    2000 143775 3750 147525 162278 14753 29505000
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