Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 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. 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.
How many labor hours should Johnson estimate are needed for the additional 12 units?
Note: Round your answer to the nearest whole number.
How much should Johnson estimate the parts cost will be for the additional 12 units?
Note: Round your answer to the nearest dollar amount.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethics Theory and Contemporary Issues

Authors: Barbara MacKinnon, Andrew Fiala

8th edition

9781305162846, 1285196759, 1305162846, 978-1285196756

More Books

Students also viewed these General Management questions

Question

1 Is the approach taken a lean approach as claimed?

Answered: 1 week ago