By 2010, Airbus was projecting to deliver 93 A380s. Instead, because of delays associated with installation misdesign for the electrical harnesses, Airbus delivered only 10 planes. The cost of the delay added $6 billion to the overall development costs to be recovered. That implies the break-even production run has now risen from 250 to over 300 planes. The company has produced 45 planes each of the last two years. What about the history of Boeing’s 747 production run that suggests the Airbus 380 may still be a considerable success?

By 2010, Airbus was projecting to deliver 93 A380s. Instead, because of delays associated with installation misdesign for the electrical harnesses, Airbus delivered only 10 planes. The cost of the delay added $6 billion to the overall development costs to be recovered. That implies the break-even production run has now risen from 250 to over 300 planes. The company has produced 45 planes each of the last two years. What about the history of Boeing’s 747 production run that suggests the Airbus 380 may still be a considerable success?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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