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Ahlia Technologies, which manufacturers high-technology instruments for spacecraft, is considering the sale of a navigational unit to a private company that wishes to launch its
Ahlia Technologies, which manufacturers high-technology instruments for spacecraft, is considering the sale of a navigational unit to a private company that wishes to launch its own communications satellite. The company plans to purchase 8 units, although it would also consider buying 16 units. Ahlia has started a chart relating labor time required to units produced:
Units Produced (X) | Time Required to Produce the Xth Unit |
1 | 5,000 hours |
2 | 4,500 hours |
4 | 4,050 hours |
8 | ? |
16 | ? |
Instructions:
- Complete the chart by filling in the labor time required to produce 8 and 16 units. (5 marks) (show your calculations)
- Assume that labor time costs $140 per hour. Compare the cost of production 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? (3 marks)
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