Cost estimation, incremental unit-time learning model. Assume the same information for Nautilus Company as in Problem 10-31 with one exception. This exception is that Nautilus uses an 85% incremental unit-time learning model as a basis for predicting direct manufacturing labour-hours (DMLH) in its assembling operations. (An 85% learning curve means b = -0.234465.) REQUIRED 1. Prepare a prediction of the total costs for producing the seven PT109s for the Navy. 2. If you solved requirement 1 of Problem 10-31, compare your cost prediction there with the one you made here. Why are the predictions different? How should Nautilus decide which model it should use?

LO1