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Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the first unit of
Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the first unit of RS-32 follow: Direct Material $320,000 Direct Labor $212,500 Variable Overhead $160,000 Additional information about the production process follows: Units of Output 1 Total Labor Hours Machine Hours 1 Unit 8,500 14,620 19 820 1,000 2,000 2 Units 3 Units Suppose that the total cost of building four units, assuming that the company uses an incremental Learning Curve Model, What was the total cost to build 4 units? $2.548,680 $605,660 $1,085,660 $2.525,660
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