From: "Paul F Austin" <paustin@digital.net>
Newsgroups: rec.aviation.military
Subject: Re: B2: what is the real cost?
Date: Thu, 1 Apr 1999 07:58:02 -0500

matt o wrote
>Hemang Yadav wrote in message
>
><snip a bunch of basic microeconomics>
>
>>If you build 10 planes:
>> Average cost = (100+10*10)/10 = $20 million
>> If you build 50 planes:
>> Average cost = (100+10*50)/50 = $12 million
>> If you build 100 planes:
>> Average cost = (100+10*100)/100 = $11 million
>>
>
>I was looking for the parts and labor cost to produce one B2; not taking
>into account the sunk costs (i.e.: r&d, specialized machinery, hangers,
>etc.)
>


Northrop was willing to sign up for B-2 serial production at $350M recurring
price. That was  fly away cost in 1990 dollars and included the airframe
with all GFE installed and tested but probably excluded all spares,
facilities and training.

 It's almost impossible to arrive at a "real price" for these kinds of
things. As an example, commercial aircraft engines are sold (at millions a
piece) at a break-even price with the expectation that the spares and
overhaul profits will make an adequate return on investment.

"people of means-decent folk-should be given more votes
than drifters, whores, criminals, degenerates, atheists
and indecent folks-people without means."

Paul F Austin
paustin@digital.net