Gidgets, Inc. manufactures gadgets. Each new employee takes 8 hours to assemble their first gadget, and the average time per gadget after the second gadget is made is 6 hours. The labor rate is $20 per hour.

What is the learning-curve percentage?

What is the total time needed for a new employee to build eight gadgets using the cumulative average time method (round average times to four decimal places and total time to two decimal places)?

What is a new employee's total expected labor cost to assemble eight gadgets (round to two decimal places)?

Extra Credit: What is a new employees total expected labor cost to assemble 4 gadgets using the incremental learning curve model and assuming the second unit took 6 hours to make? The factor for a 75% learning curve is -.41504