Kennerson Co

question 12

Essay

Kennerson Co.produced a pilot run of seventy units of a recently developed part used in the finished products.Kennerson Co.expects to produce and sell 2,380 units annually.The pilot run required 20.16 direct labor hours for the seventy units,averaging .408 direct labor hours per piston.Kennerson experiences an eighty percent learning curve on the direct labor hours needed to produce new parts.
Required: Assuming the parts are manufactured by Kennerson Co. ,calculate the average direct labor hours per unit for the first 1,120 parts (including the pilot run)produced.

---

Definitions:

Personal Determinants

Individual factors that influence behavior and decision-making.

Interpersonal Determinants

Interpersonal determinants refer to factors within social interactions and relationships that influence behaviors, attitudes, and outcomes between individuals.

Relationship Marketing

A marketing strategy focusing on building long-term relationships with customers rather than on individual transactions.

Production Era

A historical period in business where the focus was on production capabilities and efficiencies, with the belief that any product made efficiently and of good quality would sell.