Question: 4 . 2 If unit 1 requires 2 0 0 hours to produce and the labor records for an Air Force project contract of 5
If unit requires hours to produce and the labor records for an Air Force project contract of units indicates an average labor content of hours per unit, what was the learning rate? What total additional number of labor hours would be required for a followon Air Force contract of units? What would be the average labor content of this second contract? Of both contracts combined? If labor costs the vendor $hour on this second contract and the price to the Air Force is fixed at $ each, what can you say about the profitability of the first and second contracts, and hence the bidding process in general?
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