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: (choose one)

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


CT = (1 + 1.36 + 0.31)(650,000) = $1,735,500

Answer is (c) $1,735,500

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