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Johnson Industries received a contract to develop and produce four high - intensity long - distance receiver / transmitters for cellular telephones. The first took
Johnson Industries received a contract to develop and produce four highintensity longdistance receivertransmitters for cellular telephones. The first took labor hours and $ worth of purchased and manufactured parts; the second took labor hours and $ in parts; the third took labor hours and $ in parts; and the fourth took labor hours and $ 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 followon contract for another dozen receivertransmitter 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 A
How many labor hours should Johnson estimate are needed for the additional units?
Note: Round your answer to the nearest whole number.
How much should Johnson estimate the parts cost will be for the additional units?
Note: Round your answer to the nearest dollar amount.
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