Sweep Up and Fly, Inc., manufactures brooms. Each new employee takes 4 hours to assemble their first broom, and the average time per broom after the second broom is made is 3.4 hours. The labor rate is $10 per hour.

a. What is the cumulative average learning-curve percentage?

b. What is the total time needed for a new employee to build 16 brooms using the cumulative average time method(round average times to four decimal places and total time to two decimal places)? 

c. What is the total expected labor cost of a new employee to assemble 16 brooms(round to two decimal places)?

d. Extra Credit: What is the total expected labor cost of a new employee to assemble 16 brooms under the incremental time model (round to two decimal places)?

Answer rating: 100% (QA)

Part A Assemble hour for second time 340 Divided by assemble hour for first time 400 Cum... View the full answer