Discussion
A programme with high development cost and a small production run will have
Answer: A
Correct answer: A high amortised cost per aircraft
Amortised development cost is the RDT&E divided by the number of aircraft built, so a large numerator over a small denominator gives a high charge per aircraft.
This is the structural difficulty of military and niche programmes: a development effort as demanding as a transport's may be spread over a few dozen airframes rather than a few thousand, so each carries tens of millions in development alone. It is also why export sales matter so much - every additional aircraft dilutes a cost that has already been spent.
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