Your Company Is Making Experimental Turbochargers for a New Design

question 104

Essay

Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below.
$$\begin{array} { | c | c | } \hline \text { Month } & \text { Turbochargers } \\\hline 1 & 4 \\\hline 2 & 6 \\\hline 3 & 7 \\\hline 4 & 8 \\\hline 5 & 5 \\\hline\end{array}$$
The first turbocharger, a trial unit, took 900 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. How many hours will be required in each month?
In which month(s) will overtime be required to meet the production schedule?

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Definitions:

Cigarettes

Narrow cylinders containing psychoactive material, typically tobacco, that are rolled into thin paper for smoking.

Levy

A tax imposed by a government on goods, services, or financial transactions.

Consumption

The use of goods and services by households, which represents the final phase in the economic chain of activities.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.