Weathereye, Inc. manufactures weather satellites. The final assembly and testing of the sa...

Weathereye, Inc. manufactures weather satellites. The final assembly and testing of the satellites is a largely manual operation involving dozens of highly trained electronics technicians. The following learning curve has been estimated for the firm’s newest satellite model, which is about to enter production.

Required:

1. What will be the average labor time required to assemble and test each satellite when the company has produced four satellites ? Eight satellites ?

2. What will be the total labor time required to assemble and test all satellites produced if the firm manufactures only four satellites ? Eight satellites ?

3. How can the learning curve be used in the company's budgeting process? In setting cost standards?