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A5-1 (Static) Norwegian Satellite Development Company... Norwegian Satellite Development Company (NSDC) Cost Estimates for World Satellite Telephone Exchange Project NSDC has a contract to produce
A5-1 (Static) Norwegian Satellite Development Company... Norwegian Satellite Development Company (NSDC) Cost Estimates for 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 eigh 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 tota costs. A How many labor hours should satellite number 8 require? Labor hours B. How many labor hours would be required for the whole project of 8 satellites? Labor hours 71,207 C. What price would you ask for the project? (Click to select) D. Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What cost savings do you expect (neglect profit)? (Round the final answer to the nearest NOK.) Cost savings Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What cost savings do you expect (neglect profit)? (Round the final answer to the nearest NOK.) Cost savings E Near the end of the project Deutsch Telefon AG requests a cost estimate for four satellites identical to those you have already produced. What are your incremental costs (do not include profit)? (Click to select)
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