Question: Ch 4 A - 7 ( Static ) Johnson Industries received a contract to develop and produce four high - intensity long - distance receiver
ChAStatic
Johnson Industries received a contract to develop and produce four highintensity longdistance receivertransmitters for cellular telephones. The first took labor hours and $ worth of purchased and manufactured parts; the second took labor hours and $ in parts; the third took labor hours and $ in parts; and the fourth took labor hours and $ 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 followon contract for another dozen receivertransmitter 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 curvesone for labor and one for parts. Use Exhibit A
a How many labor hours should Johnson estimate are needed for the additional 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 units?
Note: Round your answer to the nearest dollar amount.
Estimated parts cost
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