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An Assembly Task Has a Learning Curve Rate of 93

question 7

Essay

An assembly task has a learning curve rate of 93% and reaches a steady state after 70 units with 15 man- hours per unit. What is the estimated number of man- hours required to complete the first and the fifth units?


Definitions:

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Break-even Units

The number of units a company must sell to cover all its costs, with no profit or loss.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials or labor directly involved in producing a product.

Selling Price

The amount of money charged for a product or service, or the sum for which something is offered for sale.

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