A Company Negotiates a Price for Two Aircraft That Includes

question 4

Multiple Choice

A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 40%, how will the total time to complete both aircraft change?

• A) no change
• B) −10 hours
• C) +10 hours
• D) −30 hours
• E) +30 hours

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