question archive Suad Alwan, lhe purchasing agent for Dubai Ainines, has determined that the second plane took 16,000 hours to produce
Suad Alwan, lhe purchasing agent for Dubai Ainines, has determined that the second plane took 16,000 hours to produce
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Suad Alwan, lhe purchasing agent for Dubai Ainines, has determined that the second plane took 16,000 hours to produce. Using an 80% learning curve and a $35-per—hour labor charge, he wants to determine the cost of the six additional planes. 11me required [or the sixth unlt = 11,240 hours (round your response to the nearest whole number). Cost of the sixth unii : 393,400 dollars (round your response to the nearest whole number). Time required [or the seventh unit = 10,690 hours (round your response to the nearest whole number)' Cost of the seventh unit = dollars (round your response to the nearest whole number).
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a. Time taken to produce second plane=16,000 hours (Tn)
Time taken to produce Nth plane is:
Tn=T1*N ln L/ln 2
L=Learning rate
=80%
=0.80.
Substituting the value in the formula
16000=T1*2 ln 0.80/ln 2
16000=T1*2 -0.3219
16000=T1*0.80
T1=16000/0.80
=20,000 hours.
Time taken to produce the sixth plane=T6
T6=T1*6 ln 0.80/ln 2
T6=20,000*6-0.321
=20,000*0.562
=11,240 HOURS
b. Cost of the 6th unit=11,240*35
=393,400
c. Time taken to produce the 7th unit=T7
T7=T1*7 -0.321
=20,000*0.5345
=10,690 hours.
d. Cost for the 7th unit=10,690*35
=374,150
