Question

Central Power owns 25 small power gen crating plants. It has contracted with Genco Services to overhaul the power turbines of each of the plants. The number of hours that Genco billed Central to complete the third turbine was 460. Central pays Genco $60 per hour for its services. As the maintenance manager for Central, you are trying to estimate the cost of overhauling the fourth turbine, flow much would you expect to pay for the overhaul of number 5 and number 6? All the turbines are similar and an 80% learning curve is appropriate.



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  • CreatedJuly 23, 2013
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