Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,200 labor hours and $40,000 worth of purchased and manufactured parts; the second took 1,890 labor hours and $38,400 in parts; the third took 1,740 labor hours and $37,250 in parts; and the fourth took 1,588 labor hours and $36,100 in parts.

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

a. Ignoring any forgetting factor effects, how many labor hours should Johnson estimate are needed for the additional 12 units?

Note: Round your answer to the nearest whole number.

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.

Exhibit 6.5 Improvement Curves: Table of Cumulative Values Cumulative Improvement Factor Unit 50% 65% 70% 75% 30% 85% 95% 1.006 1.000 1.090 1.906 1.000 1.090 1. 090 1.600 1.650 1.700 1.750 1.800 1.850 1.900 1.950 2.045 2.155 2. 268 2.384 2.502 2.623 2.746 2.872 GH A W N 2. 405 2.578 2.758 2.946 3.142 3.345 3.556 3.774 2.716 2.946 3.195 459 3.738 4.031 4.339 4.662 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 3.432 3.847 4.30 4.802 5.346 5.936 6.574 7 .261 3.630 4.102 4.626 5.204 5.839 6.533 7.290 B. 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 3.245 9.716 11.41 13.33 15.52 20 5.171 6.195 7.407 8.828 10.48 12.40 14.61 17.13 22 5.379 6.492 7.819 9.388 11.23 13.38 15.86 18.72 24 5.574 6.773 B. 213 9.928 11.95 14.33 17.10 20.31 25 5.668 909 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 6. 814 11.82 15.82 21.09 27.96 36.80 48.05 52.25 96 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 57.93 30.71 140 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 53.68 98.85 151.5 228.8 340.6 500 17.21 27.67 44.47 70.97 112.0 174.2 267.1 103.3 700 18.06 29.45 48, 04 77.77 124.4 196. 1 304.5 465.3 800 18 .82 31.09 51. 36 84.18 136.3 217.3 341.0 526.5 300 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, 260 21. 30 36.59 62.85 107.0 179.7 296.6 481.2 766.6 1, 400 22.32 38.92 57.85 117.2 199.6 333.9 548.4 84.2 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 1236 2,500 26.53 48.97 90.3 165.0 296.1 520.8 897.0 1513 3,000 27.99 52.62 98.90 183.7 335.2 598.9 1047 1791