Chapter $5$ Exercises$-$Appendix $5\mathrm{.}1$

Norwegian Satellite Development Company Cost estimates for

World Satellite Telephone Exchange Project

NSDC has a contract to produce eight satellites to support a worldwide telephone system $($fo Alaska Telecom, Inc.$)$ that allows individuals to use a single, portable telephone in any location $0$ earth to call in and out. NSDC will develop and produce the eight units. NSDC has estimated the the R&D costs will be $$12,000,000.$ Material costs are expected to be $$6,000,000.$ They hav estimated the design and production of the first satellite will require $100,000$ labor hours and a $80$ percent improvement curve is expected. Skilled labor cost is $$300$ per hour. Desired profit fo all projects is $25$ percent of total costs. If

A$.$ How many labor hours should the eighth satellite require?