The final requirement computes the cost to produce eight (8) stabilization devices. The time to produce the first stabilization device measured 160 man-hours. The cost, at $55 per man-hours, for the first stabilization devise came to $8,800. Production Project Manages assessed that since this was a new product, a learning curve 70% will be applied. Respond to requirements a. through c. below.
- Based on a learning curve of 70%, how many man-hours will be required to produce the 8th stabilization devise?
- What is the cost to produce the 8th stabilization device?
- What is the accumulative cost to produce all 8 stabilization devises?