Question: 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

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 1,940 labor hours and $38,220 in parts; the third took 1,740 labor hours and $36,120 in parts; and the fourth took 1,533 labor hours and $34,020 in parts.

Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. (Hint: There are two learning curvesone for labor and one for parts.) Use Exhibit 6.5 in the attachment

a. How many labor hours should Johnson estimate are needed for the additional 12 units? (Round your answer to the nearest whole number.)

B.How much should Johnson estimate the parts cost will be for the additional 12 units? (Round your answer to the nearest dollar amount.)

Johnson Industries received a contract to develop

Exhibit 6.5 Improvement Curves: Table of Cumulative Values Cumulative Improvement Factor 70% 75% 80% Unit 60% 65% 85% 90% 95% 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 1.600 1.650 1.700 1.750 1.800 1.850 1.900 1.950 3 2.045 2.155 2.268 2.384 2.502 2.623 2.746 2.872 4 2.405 2.578 2.758 2.946 3.142 3.345 3.556 3.774 5 2.710 2.946 3.195 3.459 3.738 4.031 4.339 4.662 6 2.977 3.274 3.593 3.934 4.299 4.688 5.101 5.538 7 3.216 3.572 3.960 4.380 4.834 5.322 5.845 6.404 8 8 3.432 3.847 4.303 4.802 5.346 5.936 6.574 7.261 9 3.630 4.102 4.626 5.204 5.839 6.533 7.290 8.111 10 3.813 4.341 4.931 5.589 6.315 7.116 7.994 8.955 12 4.144 4.780 5.501 6.315 7.227 8.244 9.374 10.62 14 4.438 5.177 6.026 6.994 8.092 9.331 10.72 12.27 16 4.704 5.541 6.514 7.635 8.920 10.38 12.04 13.91 18 4.946 5.879 6.972 8.245 9.7 16 11.41 13.33 15.52 20 5.171 6.195 7.407 8.828 12.40 14.61 17.13 10.48 11.23 22 5.379 6.492 7.819 9.388 13.38 15.86 18.72 24 5.574 6.773 8.213 9.928 11.95 14.33 17.10 20.31 25 5.668 6.909 8.404 10.19 12.31 14.80 17.71 21.10 30 6.097 7.540 9.305 11.45 14.02 17.09 20.73 25.00 35 6.478 8.109 10.13 12.72 15.64 19.29 23.67 28.86 40 6.821 8.631 10.90 13.72 17.19 21.43 26.54 32.68 45 7.134 9.114 11.62 14.77 18.68 23.50 29.37 36.47 50 7.422 9.565 12.31 15.78 20.12 25.51 32.14 40.22 60 7.941 10.39 13.57 17.67 22.87 29.41 37.57 47.65 70 8.401 11.13 14.74 19.43 25.47 33.17 42.87 54.99 80 8.814 11.82 15.82 21.09 27.96 36.80 48.05 62.25 90 9.191 12.45 16.83 22.67 30.35 40.32 53.14 69.45 100 9.539 13.03 17.79 24.18 32.65 43.75 58.14 76.59 120 10.16 14.11 19.57 27.02 37.05 50.39 67.93 90.71 140 10.72 15.08 21.20 29.67 41.22 56.78 77.46 104.7 160 11.21 15.97 22.72 32.17 45.20 62.95 86.80 118.5 180 11.67 16.79 24.14 34.54 49.03 68.95 95.96 132.1 200 12.09 17.55 25.48 36.80 52.72 74.79 105.0 145.7 250 13.01 19.28 28.56 42.05 61.47 88.83 126.9 179.2 300 13.81 20.81 31.34 46.94 69.66 102.2 148.2 212.2 350 14.51 22.18 33.89 51.48 77.43 115.1 169.0 244.8 400 15.14 23.44 36.26 55.75 84.85 127.6 189.3 277.0 450 15.72 24.60 38.48 59.80 91.97 139.7 209.2 309.0 500 16.26 25.68 40.58 63.68 98.85 151.5 228.8 340.6 600 17.21 27.67 44.47 70.97 112.0 174.2 267.1 403.3 700 18.06 29.45 48.04 77.77 124.4 196.1 304.5 465.3 800 18.82 31.09 51.36 84.18 136.3 217.3 341.0 526.5 900 19.51 32.60 54.46 90.26 147.7 237.9 376.9 587.2 1,000 20.15 31.01 57.40 96.07 158.7 257.9 412.2 647.4 1,200 21.30 36.59 62.85 107.0 179.7 296.6 481.2 766.6 1.400 22.32 38.92 67.85 117.2 199.6 333.9 548,4 884.2 1.600 23.23 41.04 72.49 126.8 218.6 369.9 614.2 1001 1.800 24.06 43.00 76.85 135.9 236.8 404.9 678.8 1116 2.000 24.83 44.84 80.96 144.7 254.4 438.9 742.3 1230 2,500 26.53 48.97 90.39 165.0 296.1 520.8 897.0 1513 3.000 27.99 52.62 98.90 183.7 335.2 598.9 1047 1791

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