NSDC has a contract to produce eight satellites to support a worldwide telephone system (for Alaska TelecomInc.) that allows individuals to use a single, portable telephone in any location on earth to call in and out. NSDC will develop and produce the eight units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12,000,000. Material costs are expected to be NOK 000, 000 . They have estimated that the design and production of the first satellite will require 100,000 labor hours, and an 80 percent improvement curve is expectedSkilled labor cost is NOK 300 per hour. Desired profit for all projects is 25 percent of total costs. A. How many labor hours should the eighth require? Labor Hours for the Satellite: B. How many labor hours are required for the whole project of eight satellites ? Cumulative Labor Hours for 8 Satellites using an 80% Improvement Curve: Labor Hours for Whole Project: What price would you ask for the project? Total Direct Cost for Project Profit Total Project Cost: D. Midway through the project your design and production people realize that a 75 % Improvement curve is more appropriate . What Impact does this have on the project? Cumulative Labor Hours for 8 Satellites using a 75% Improvement Curve: Difference: Difference in Total Labor Hours for Whole Project: Near the end of the project Deutsch Telefon AG has requested a cost estimate for four satellites identical to those you have already produced. What price will you quote them ? Cumulative Labor Hours for 12 Satellites Using a 75% Improvement Curve: Cumulative Labor Hours for 8 Satellites Using a 75% Improvement Curve: Difference between 12 & 8 Satellites: Labor Hours for 4 Satellites: Cost for of Materials : Total Direct Cost for Project Profit