8. It takes 80 hours of labor time to complete the first unit of output. Assuming that the company adopts the individual unit-time learning model with a 90 percent learning rate:
   1. the 2^nd unit will take 72 hours.
   2. the time to finish the 3^rd unit cant be determined.
   3. the fourth unit will take 64 hours.
   4. direct materials will be reduced because of learning.
9. High-low cost estimation:
   1. provides a very precise cost estimate.
   2. assumes that costs behave linearly.
   3. uses extreme points which are always representative of the rest of the data.
   4. is used to determine total product costs.
10. Which of the following statements about learning is correct?
    1. Learning affects labor costs.
    2. The presence of learning means that variable costs tend to decrease per unit as the volume increases.
    3. Failure to recognize learning effects can have unexpected consequences.
    4. All of the above.