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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. The government agency plans to purchase 8 units, although it would also consider buying 16 units. General Dynamics has started a chart relating labor time required to units produced.
Unit Produced Time Requierd to produce
(X) the Xth Unit
1 13,000 hours
2 7, 800 hours
4 4,680 hours
8 ?
16 ?
Required
Question 1: Compute the labor time require to produce 8 and 16th units. (Round your answers to the nearest whole number.)
Question 2: Assume that labor time costs $70 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? (Do not round intermediate calculations. Enter your answers as a percenter rounded to 2 decimal places.
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