The Open Waters Company, which is under contract to the U.S. Navy, assembles troop deployment boats. Open Waters reports the following cost information for the first PT109 assembled. More info Requirement 1. Prepare a prediction of the total costs for producing the six PT109s for the Navy. Begin by calculating the cumulative total time in labor-hours. (Round the individual unit time for Xth unit to the nearest whole number.) ( Number of Individual unit time for Cumulative total time: units Xth unit: Labor-hours Labor-hours As part of its research program, it completes the assembly of the first of a new model (PT109) of deployment boats. The Navy is impressed with the PT109. It requests that Open Waters submit a proposal on the cost of producing another six PT109s. Open Waters reports the following cost information for the first PT109 assembled. 1 2 3 3 4 Requirements 5 6 7 AX Data table 1. Prepare a prediction of the total costs for producing the six PT109s for the Navy. 2. Compare the cost predictions from requirement 1 (incremental unit-time leaming model) with the cost predictions based on a cumulative average-time learning model which has total costs of $5,619.037. Why are the predictions different? How should Open Waters decide which model it should use? Cumulative average-time learning model's cumulative average time per unit and cumulative total time Number of Cumulative average time Cumulative total time: units per unit: Labor-hours Labor-hours 1 15,400 15,400 Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs Variable manufacturing overhead costs Other manufacturing overhead Tooling costs? $ 207,000 per PT109 15.400 direct manufacturing labor-hours - 90% cumulative average time $ 37 per direct manufacturing labor-hour $ 25 per direct manufacturing labor-hour 15% of direct manufacturing labor costs $ 287,000 2 13,860 13,032 27,720 39,096 3 4 12,474 49,896 5 60,290 12,058 11,728 1 6 In 0.90 -0.105361 Using the formula for a 90% leaming curve, b= In 2 = 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat 0.693147 -0.152004 70,368 80,199 7 11,457