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A programme's RDT&E cost is \( 2.4 \) billion dollars and \( 300 \) aircraft are built. The amortised development cost per aircraft is

  • A.8.0 million dollars
  • B.800 million dollars
  • C.0.8 million dollars
  • D.72 million dollars

Answer: A

Correct answer: 8.0 million dollars

Amortised development cost is the RDT&E divided by the number of aircraft:

\[ \frac{2.4 \times 10^9}{300} = 8.0 \times 10^6 = 8.0\ \mathrm{million\ dollars} \]

Every aircraft sold must recover that 8 million on top of its own production cost before the programme contributes anything. Doubling the run to 600 would halve it - which is why manufacturers pursue derivative versions and export sales so hard once the development is paid for.

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