Factors affecting the cost of airplanes

TH I S subject is one which can always be relied upon to start a discussion whenever it is raised in aircraft circles. Great differences of opinion will be voiced as to the relative importance of various factors, depending somewhat on whether the discussion is between persons in the (industry who are engaged in sales, engineering, design or factory work. The attitude of those outside the industry is usually quite supercilious with the intimation present that everyone engaged in the design, development, or construction of airplanes is a sort of prima donna. Therefore, because of the rather hazy information which seems to surround the subject, it appears in order to discuss the problems from several points of view in an effort to arrive at logical conclusions. The effect of quantity production on cost, particularly, requires study as in this respect more than in others, there exists a lack of appreciation of the variation which occurs. Recently the matter became of increasing interest and importance because of the program sponsored by the Bureau of Air Commerce for the development of a small two-place airplane which, it was hoped, could be marketed at $700 assuming a quantity of ten thousand units could be released for construction.