Learning Curve

Bordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for commercial buildings. For each new design, Bordner faces a 70 percent learning rate. On average, the first unit of a new design takes 700 hours. Direct labor is paid $45 per hour.

Required:

1. Complete the table below showing results by row for total production of: one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) (Round Cumulative Total Time answers to the nearest whole number.)

2. What is the total labor cost if Bordner makes the following number of units: one, four, sixteen? (Round your answers to the nearest dollar.) (Use the rounded answers in the subsequent computations.)

What is the average cost per system for the following number of systems: one, four, or sixteen? (Round your answers to the nearest dollar.)

3. Using the logarithmic function, complete the table below showing results by row for each of units one through eight. (Round hour answers to two significant digits.) (Round Cumulative Total Time and Time for Last Unit answers to the nearest whole number.)