New Venture,Inc

question 21

Essay

New Venture,Inc.has received a contract for 8 units of a new product.The contract is a cost-plus contract,with the total to be received equal to the total labor cost + 20%.New Venture found that the first unit of a new product required 120 hours to complete.The second unit was completed using only 114 hours.New Venture believes that the rate of learning that was observed will continue for all 8 units of the contract.The labor wage paid is $25/hour.The following factors are available for various rates of learning: 80% learning,b = -.3219;85%,b = -.2345;90%,b = -.1520;95%,b = -.0740.Required:
(a. )What will the total labor cost be for the contract?
(b. )What will the total fee be for the contract?

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Definitions:

Securities Regulations

The body of laws and rules that govern the issuance, trading, and sale of securities to protect investors and ensure market integrity.

Intrastate Issues

Matters or disputes that arise within a single state's boundaries, without impacting other states.

Main Offices

The principal or headquarters of an organization where major administrative and management functions are conducted.

Manipulative And Deceptive Devices

Tactics or schemes designed to deceive or mislead people, often used in reference to fraudulent practices in securities trading.