
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Transcribed Image Text:Refer to Exercise A5.1 in your textbook. Assuming that 90% improvement curve is more appropriate for the
entire project and desired profit is 20% to win over the competition, the total price paid for 90 units is:
Add your answer
Integer, decimal, or E notation allowed

Transcribed Image Text:World Satellite Telephone Exchange Project
NSDC has a contract to produce eight satellites to support a worldwide
telephone system (for Alaska Telecom, Inc.) that allows individuals to use a
single, portable telephone in any location on earth to call in and out. NSDC
will develop and produce the eight units. NSDC has estimated that the R&D
costs will be NOK (Norwegian Krone) 12,000,000. Material costs are
expected to be NOK 6,000,000. They have estimated that the design and
production of the first satellite will require 100,000 labor hours, and an 80
percent improvement curve is expected. Skilled labor cost is NOK 300 per
hour. Desired profit for all projects is 25 percent of total costs.
A. How many labor hours should the eighth satellite require?
ce.
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