Learning curve, incremental unit-time learning curve. (20 minutes) Assume the same information for Genve Dfense Systemes as

Learning curve, incremental unit-time learning curve. (20 minutes)

Assume the same information for Genéve Défense Systemes as in Exercise 9-17 except that Geneve Défense Systemes uses a 90% incremental unittime learning curve as a basis for forecasting direct manufacturing labourhours. (A 90% learning curve implies q = — 0.1520.)

REQUIRED 1. Calculate the total variable costs of producing 2,3 and 4 units.

2. Ifyou solved Exercise 9-17, compare your cost predictions in the two exercises for 2 and 4 units. Why are the predictions different? nhy7