Learning curve, incremental unit time learning curve. Assume the same information for Global Radar as in Exercise 10-27 except that Global Radar uses a 90% incremental unit¬

time learning curve as a basis for forecasting direct manufacturing labour-hours. (A 90%

learning curve implies b = -0.1520)

410 Required 1. Calculate the total variable costs of producing two, three, and four units.

2. If you solved Exercise 10-27, compare your cost predictions in the two exercises for two CHAPTER 10 and four units. Why are the predictions different?