Shrewsbury Technologies, which manufactures high-technology instruments for spacecraft, is considering the sale of a navigational unit to a private company that wishes to launch its own communications satellite. The company plans to purchase 8 units, although it would also consider buying 16 units. Shrewsbury has started a chart relating labor time required to units produced: Unit Produced (X) Time Required to Produce the Xth Unit 1 5,000 hours 2 4,500 hours 4 4,050 hours 8 ? 16 ? Required: Compute the labor time required to produce 8 and 16 units. Assume that labor time costs $140 per hour. Compare the cost of producing the 1st 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 1st unit?

Shrewsbury Technologies, which manufactures high-technology instruments for spacecraft, is considering the sale of a navigational unit to a private company that wishes to launch its own communications satellite. The company plans to purchase 8 units, although it would also consider buying 16 units. Shrewsbury has started a chart relating labor time required to units produced: Unit Produced (X) Time Required to Produce the Xth Unit 1 5,000 hours 2 4,500 hours 4 4,050 hours 8 ? 16 ? Required: Compute the labor time required to produce 8 and 16 units. Assume that labor time costs $140 per hour. Compare the cost of producing the 1st 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 1st unit?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 31P: Jonfran Company manufactures three different models of paper shredders including the waste...

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Unit Produced (X)	Time Required to Produce the Xth Unit
1	5,000 hours
2	4,500 hours
4	4,050 hours
8	?
16	?

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