Your program plans to acquire a total of 600 end items costing $535 million over a five-year period (five Lots). The first production contract is to be awarded in FY14. The number of items to be procured (not delivered) each year and their estimated cost (in then-year dollars) is shown below:
Lot FY Lot Size Total Lot Cost
1 FY14 50 $50 million
2 FY15 100 $95 million
3 FY16 150 $135 million
4 FY17 150 $130 million
5 FY18 150 $125 million