Question
Assume that Whee, Cheatham, and Howe is an auditing firm that has found that its summer...
Assume that Whee, Cheatham, and Howe is an auditing firm that
has found that its summer interns are subject to a 70 percent
learning curve for one of its important tasks, proofreading
financial statements. For one of its interns, Kim Down, the firm
has started to analyze the relation between time and financial
statement proofreading.
| Financial Statements Proofread (X) |
Time Required to Proofread the Xth Financial Statement |
| 1 | 8.0000 hours |
| 2 | 5.6000 hours |
| 4 | ? |
| 8 | ? |
| 16 | ? |
Required:
a. Compute the time required to proofread 4, 8, and 16 financial statements.
b. Assume that Kim's labor time costs $10 per hour. Compare the cost of proofreading the 1st financial statement to the cost of proofreading the 16th financial statement. What is the percentage of the cost of proofreading the 16th financial statement to the cost of proofreading the 1st financial statement?
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