Using the data from Problem E.14, how long will it take to complete the 12th plane? The 15th plane? How long will it take to complete planes 12 through 15 inclusive? At $40 per horn; what can Fennell, as purchasing agent, expect to pay for all 4 planes?
Wanda Fennell, the purchasing agent for Northeast Airlines, is interested in determining what she can expect to pay for airplane number 4 if the third plane took 20,000 hours to produce. What would. Fennell expect to pay for plane number 5? number 6?
Use an 85% learning curve and a $40-per-hour labor charge.