Hereford Company is planning to introduce a new product with an 80 percent learning rate for production
Fantastic news! We've Found the answer you've been seeking!
Question:
Hereford Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are $30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are $10,000 in fixed costs not subject to learning. What is the batch unit time (labor hours) to produce 2,000 units based on the cumulative average time learning curve?
a). 20 hours
b). 60 hours
c). 80 hours
d). 100 hours
Related Book For
Automation Production Systems and Computer Integrated Manufacturing
ISBN: 978-0132393218
3rd edition
Authors: Mikell P.Groover
Posted Date: