Question: ohnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,600 labor hours and $45,000 worth
ohnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,600 labor hours and $45,000 worth of purchased and manufactured parts; the second took 1,520 labor hours and $33,540 in parts; the third took 1,320 labor hours and $30,860 in parts; and the fourth took 1,125 labor hours and $28,170 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.
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.)
Exhibit 6.5 Improvement Curves: Table of Cumulative Values Cumulative Improvement Factor 70% 75% 80% Unit 85% 90% 95% 60% 1.000 1 65% 1.000 1.650 1.000 1.000 1.000 1.000 1.000 1.000 1.900 2. 1.600 1.700 1.750 1.800 1.850 1.950 3 2.045 2.155 2.268 2.384 2.502 2.623 2.746 2.872 4 2.405 2.758 2.946 3.142 3.345 3.774 3.556 4.339 5 2.578 2.946 3.274 2.710 3.195 3.459 3.738 4.031 4.662 6 2.977 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 3.432 3.847 4.303 4.802 5.346 5.936 6.574 9 3.630 4.102 4.626 5.204 5.839 6.533 7.290 10 4.341 4.931 5.589 6.315 7.116 7.994 3.813 4.144 7.261 8.111 8.955 10.62 12.27 12 4.780 5.501 6.315 7.227 8.244 9.374 14 4.438 6.026 6.994 8.092 10.72 5.177 5.541 9.331 10.38 16 4.704 6.514 7.635 8.920 12.04 13.91 18 4.946 5.879 6.972 8.245 9.716 11.41 13.33 15.52 20 5.171 6.195 7.407 10.48 12.40 14.61 17.13 8.828 9.388 22 5.379 6.492 7.819 11.23 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 9.305 11.45 14.02 20.73 25.00 35 6.478 10.13 12.72 15.64 17.09 19.29 21.43 23.67 7.540 8.109 8.631 9.114 28.86 40 6.821 10.90 13.72 17.19 26.54 32.68 45 7.134 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 27.02 37.05 50.39 67.93 90.71 19.57 21.20 140 10.72 15.08 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 25.48 36.80 52.72 74.79 105.0 145.7 250 13.01 17.55 19.28 20.81 28.56 42.05 61.47 126.9 179.2 88.83 102.2 300 13.81 46.94 69.66 148.2 31.34 33.89 212.2 244.8 350 14.51 22.18 51.48 77.43 115.1 169.0 400 15.14 23.44 36.26 55.75 84.85 127.6 189.3 277.0 309.0 450 15.72 24.60 38.48 59.80 91.97 139.7 209.2 500 16.26 25.68 40.58 63.68 98.85 151.5 228.8 340.6 600 17.21 27.67 44.47 70.97 112.0 174.2 267.1 403.3 465.3 700 18.06 29.45 48.04 77.77 124.4 304.5 196.1 217.3 800 18.82 31.09 51.36 84.18 136.3 341.0 526.5 900 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 4122 647.4 1.200 21.30 36.59 62.85 107.0 179.7 296.6 4812 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 1230 2,000 24.83 44.84 80.96 144.7 254.4 438.9 7423 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 1791Step by Step Solution
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