Question: Cost estimation incremental unit time learning model Assume the

Cost estimation, incremental unit-time learning model Assume the same information for the Nautilus Company as in Problem 10-36 with one exception. This exception is that Nautilus uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. (A 90% learning curve means b = –0.152004.)
1. Prepare a prediction of the total costs for producing the six PT109s for the Navy.
2. If you solved requirement 1 of Problem 10-36, compare your cost prediction there with the one you made here. Why are the predictions different? How should Nautilus decide which model it should use?

  • CreatedNovember 14, 2011
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