Question: Ch 4 A - 7 ( Static ) Johnson Industries received a contract to develop and produce four high - intensity long - distance receiver

Ch4A-7(Static)
Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts; the second took 1,500 labor hours and $37,050 in parts; the third took 1,450 labor hours and $31,000 in parts; and the fourth took 1,275 labor hours and $31,492 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 4A.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
lours
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
 Ch4A-7(Static) Johnson Industries received a contract to develop and produce four

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!