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university of southern california Operations And Supply Chain Management Assignment Help - Northern Tundra Telephone (NIT)


Question - Northern Tundra Telephone (NIT) has received a contract to install emergency phones along a new
100-mile section of the Snow-Moose Turnpike. Fifty emergency phone systems will be installed about
2 miles apart. The material cost of a unit is $125. NTT will need to run underground communication
lines that cost NTT $7500 per mile (including labor) to install. There will also be a one-time cost of
$10,000 to network these phones into NTT's current communication system. You are asked to
develop a cost estimate of the project from Nit’s perspective. If NTT adds a profit margin of .35% to its
costs, how much will it cost the state to fund the project?

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