Analysis of Direct Costs

Predict the main costs (e.g. labor cost, material cost) associated with the production of VectorCal’s drone navigation

system. Provide a rationale for your response.
Compare and contrast the direct and indirect costs associated with the drone navigation system that both your company and

VectorCal would assume. Predict whether or not your company could easily control these costs and thus reduce production

expenses. Justify your response.
Compare your company with VectorCal relative to the price of acquisition, semi-variable costs, and allocated direct and

indirect costs of the drone navigation system. Justify your response.

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