Ch$4$A$-7($Algo$)$

Johnson Industries received a contract to develop and produce four high$-$intensity long$-$distance receiver$/$transmitters for cellular

telephones. The first took $2,400$ labor hours and $$42,000$ worth of purchased and manufactured parts; the second took $2,060$ labor

hours and $$40,320$ in parts; the third took $1,900$ labor hours and $$39,110$ in parts; and the fourth took $1,730$ labor hours and $$37,900$ in

parts. The company expects "learning" to occur relative to labor and also relative to the pricing of parts from suppliers.

Johnson was asked to bid on a follow$-$on contract for another dozen receiver$/$transmitter units. Ignoring any forgetting factor effects,

what should Johnson estimate time and parts costs to be for the dozen units? $($Hint$.$ There are two learning curves$-$one for labor and

one for parts.$)$ Use Exhibit $4$A$\mathrm{.}6.$

a$.$ How many labor hours should Johnson estimate are needed for the additional $12$ units?

Note: Round your answer to the nearest whole number.

Estimated labor

hours

b$.$ How much should Johnson estimate the parts cost will be for the additional $12$ units?

Note: Round your answer to the nearest dollar amount.

Estimated parts cost