Paper

The Department of Defense plans to issue a $1,000,000 government contract to a company that specializes in the manufacturing of drone navigation systems. As a result, a government auditor has been contacted to examine the operational data VectorCal and your company in order to decide which company should win the government contract.

Note: You may create and / or make all necessary assumptions needed for the completion of this assignment.

Student Notes:

· The below is an outline for you to follow for your assignment.

· Refer to the rubric for this assignment to become familiar with how your paper will be graded

· Refer to scenarios and readings from previous weeks in order to complete this assignment.

In order to complete this assignment, refer to the scenario from Assignment 1 where you discussed VectorCal and your company, as well as to the scenarios and readings from previous weeks.

As indicated, follow the below template to complete your assignment

Assignment 4 –

Price Analysis for the Drone Navigation System by

VectorCal and Universal Drones Inc. Students Name BUS 315 – Cost and Price Analysis Professors Name Date of Submission

Analysis of Universal Drones, Inc.’s Cost Classifications

· Discuss, Analyze and provide examples in detail the following Cost Classifications for your company.

· Reasonable Costs

· Allowable Costs

· Allocable Costs

Analysis of Volume Based Costs

· Discuss, Analyze, and provide examples in detail how the following costs change depending on volumes produced by Universal Drones, Inc.

· Fixed Costs

· Variable Costs

· Semi-Variable Costs

Pricing Analysis by the Government

· Assuming that a firm fixed price contract will be awarded, discuss the following pricing Methods and indicate which one the Government will probably choose. Also indicate how your company will ensure that the prices will be reasonable for the Government. Remember to provide a rationale for each of these costs

· Comparison of Proposed Prices

· Comparison of market based prices

· Comparison of Prior Proposed prices

Conclusion

Summarize your findings.

Sources

Note: Use at least three (3) quality resources in this assignment. Keep in Mind: Wikipedia and similar Websites do not qualify as quality resources.

1. Follow the Credit to Authors and Sources Guidelines found in the Strayer Writing Standards (SWS).

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