Innova,Inc ASet Up a Table with Columns for Cumulative Number of 500

question 81

Essay

Innova,Inc.,is beginning the production of a new product.Management believes that 500 labour hours will be required to complete the new unit.An 80 percent incremental unit-time learning curve model for direct labour hours is assumed to be valid.Assume the q = -0.3219.Data on costs are as follows:
$\begin{array}{ll}\text { Direct materials } & \$ 50,000 \text { per unit } \\\text { Direct labour } & \$ 20 \text { per direct labour hour } \\\text { Variable manufacturing overhead } & \$ 30 \text { per direct labour hour }\end{array}$

a.Set up a table with columns for cumulative number of units showing the cumulative total time in hours using the incremental unit-time learning curve.Complete the table for 1,2,3,and 4 units given the individual unit time for the nth unit as 500,400,351,and 320 for 1 to 4 units respectively.
b.Set up a similar table assuming a 90 percent with the incremental unit-time learning curve with the individual unit time for the nth unit as 500,450,430,405 for 1 to 4 units respectively.
c.What is the difference in variable cost of producing four units?

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Definitions:

Emotional Intelligence

the ability to recognize, understand, and manage one's own emotions as well as the emotions of others.

Organizational Objectives

The specific, measurable goals that an organization aims to achieve in order to fulfill its mission and move towards its vision.

Servant Leadership

A leadership philosophy in which the main goal of the leader is to serve others; it is characterized by leaders who prioritize the needs of their team members.

Implicit Leadership

The concept that people have underlying, often unconscious, beliefs about the characteristics and behaviors that make an effective leader.