Discussion
Arrange the events of a programme reaching profitability:
1. Development costs are incurred
2. Early aircraft are delivered at high unit cost
3. Unit cost falls along the learning curve
4. Cumulative revenue passes cumulative cost at breakeven
Select the correct sequence.
Answer: C
Money goes out long before any comes in, the first aircraft are the most expensive to build, and only after the run is well advanced does the programme recover its development. Many technically fine aircraft never reach the last step.
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