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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 46
Learning Curves
Assume that General Dynamics, which manufactures high-technology instruments for spacecraft, is considering the sale of a navigational unit to a government agency in India that wishes to launch its own communications satellite. The government agency plans to purchase eight units, although it would also consider buying 16 units. General Dynamics has started a chart relating labor time required to units produced.
Required
a. Complete the chart by filling in the labor time required to produce 8 and 16 units.
b. Assume that labor time costs $100 per hour. Compare the cost of producing the first unit to the cost of producing the 16th unit. What is the percentage of the cost of the 16th unit to the cost of the first unit
Assume that General Dynamics, which manufactures high-technology instruments for spacecraft, is considering the sale of a navigational unit to a government agency in India that wishes to launch its own communications satellite. The government agency plans to purchase eight units, although it would also consider buying 16 units. General Dynamics has started a chart relating labor time required to units produced.
Required
a. Complete the chart by filling in the labor time required to produce 8 and 16 units.
b. Assume that labor time costs $100 per hour. Compare the cost of producing the first unit to the cost of producing the 16th unit. What is the percentage of the cost of the 16th unit to the cost of the first unit
Explanation
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Verified
(a)Learning curve is a graphical represe...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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