The Direct Labor Time Required to Produce the First Sailboat

question 69

Multiple Choice

The direct labor time required to produce the first sailboat of a particular model was 3000 hours.If the company believes that an 80% learning curve applies to the production of this model sailboat then the direct labor time required to produce the 2nd boat is estimated to be

• A)600 hours.
• B)2,400 hours.
• C)3,600 hours.
• D)4,000 hours.

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