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 1,460 labor hours and $29,820 in parts; the third took 1,160 labor hours and $25,200 in parts; and the fourth took 861 labor hours and $20,580 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 curvesone 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? (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.)

A B C D E F G H | J 1 Exhibit 4A.6 - Improvement Curves: Table of Cumulative Values 4 6 75% 1.0000 1.7500 2.3838 2.9463 3.4591 3.9345 4.3804 4.8022 5.2040 5.5886 5.9582 6.3147 6.6596 6.9941 7.3190 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 4 Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 A7 60% 1.0000 1.6000 2.0450 2.4050 2.7104 2.9774 3.2158 3.4318 3.6298 3.8131 3.9839 4.1441 4.2951 4.4381 4.5740 4.7036 4.8276 4.9464 5.0606 5.1705 5.2766 5.3791 5.4783 5.5744 5.6677 5.7583 5.8464 5.9322 6.0158 6.0974 6.1770 6.2547 6.3308 6.4051 6.4779 6.5492 6.6191 6.6876 6.7548 6.8208 6.8855 6.9492 7.0117 7.0732 7.1337 7.1932 740 65% 1.0000 1.6500 2.1552 2.5777 2.9455 3.2739 3.5723 3.8469 4.1021 4.3412 4.5665 4.7800 4.9831 5.1770 5.3628 5.5413 5.7132 5.8791 6.0396 6.1950 6.3457 6.49221 6.6346 6.7734 6.9086 7.0407 7.1696 7.2957 7.4190 7.5398 7.6581 7.7742 7.8880 7.9997 8.1095 8.2173 8.3233 8.4276 8.5302 8.6312 8.7307 8.8287 8.9252 9.0204 9.1143 9.2069 000 70% 1.0000 1.7000 2.2682 2.7582 3.1950 3.5928 3.9601 4.3031 4.6260 4.9318 5.2229 5.5013 5.7685 6.0257 6.2739 6.5140 6.7467 6.9727 7.1925 7.4065 7.6153 7.8191 8.0183 8.2132 8.4040 8.5910 8.7745 8.9545 9.1313 9.3050 9.4759 9.6439 9.8094 9.9723 10.1328 10.2910 10.4469 10.6008 10.7526 10.9024 11.0504 11.1965 11.3409 11.4835 11.6245 11.7640 7.6355 7.9440 8.2453 8.5399 8.8284 9.1110 9.3882 9.6604 9.9278 10.1907 10.4494 10.7040 10.9548 11.2020 11.4458 11.6862 11.9235 12.1578 12.3892 12.6179 12.8439 13.0673 13.2883 13.5069 13.7232 13.9373 14.1493 14.3592 14.5671 14.7731 14.9772 1705 80% 1.0000 1.8000 2.5021 3.1421 3.7377 4.2994 4.8339 5.3459 5.8389 6.3154 6.7775 7.2268 7.6647 8.0923 8.5105 8.9201 9.3218 9.7162 10.1037 10.4849 10.8602 11.2299 11.5943 11.9538 12.3086 12.6589 13.0050 13.3471 13.6853 14.0199 14.3509 14.6786 15.0031 15.3244 15.6428 15.9583 16.2710 16.5810 16.8885 17.1935 17.4960 17.7962 18.0942 18.3899 18.6835 18.9751 85% 1.0000 1.8500 2.6229 3.3454 4.0311 4.6881 5.3217 5.9358 6.5332 7.1161 7.6860 8.2444 8.7925 9.3311 9.8611 10.3831 10.8977 11.4055 11.9069 12.4023 12.8920 13.3765 13.8559 14.3306 14.8007 15.2666 15.7283 16.1861 16.6402 17.0907 17.5377 17.9814 18.4219 18.8593 19.2938 19.7254 20.1543 20.5805 21.0041 21.4252 21.8438 22.2601 22.6741 23.0859 23.4955 23.9030 90% 1.0000 1.9000 2.7462 3.5562 4.3392 5.1008 5.8447 6.5737 7.2898 7.9945 8.6890 9.3745 10.0516 10.7211 11.3837 12.0398 12.6899 13.3344 13.9735 14.6078 15.2373 15.8624 16.4833 17.1002 17.7132 18.3227 18.9286 19.5312 20.1306 20.7269 21.3202 21.9107 22.4985 23.0835 23.6660 24.2461 24.8237 25.3989 25.9719 26.5427 27.1114 27.6780 28.2425 28.8051 29.3658 29.9246 95% 1.0000 1.9500 2.8719 3.7744 4.6621 5.5380 6.4039 7.2612 8.1112 8.9545 9.7919 10.6239 11.4511 12.2736 13.0921 13.9066 14.7174 15.5249 16.3291 17.1302 17.9285 18.7241 19.5170 20.3074 21.0955 21.8812 22.6648 23.4462 24.2257 25.0032 25.7788 26.5526 27.3246 28.0949 28.8636 29.6306 30.3961 31.1601 31.9227 32.6838 33.4435 34.2019 34.9589 35.7147 36.4692 37.2225 702AE CO010 101 2005 40415