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to dealers for each modification completed. Honda is trying to establish a fair amount of compensation to pay dealers and has decide to choose a

to dealers for each modification completed. Honda is trying to establish a fair amount of compensation to pay dealers and has decide to choose a number of randomly selected mechanics and observe their performance and learning rate. Analysis demonstrated that th average learning rate was 90 percent, and Honda then decided to pay a $60 fee for each repair (3 hours $20 per flat-rate hour).
Southwest Honda, Incorporated, has complained to Honda Motor Company about the fee. Six mechanics, working independently, have completed two modifications each. All took 9 hours, on average, to do the first unit and 8.10 hours to do the second. Southwest refuses to do any more unless Honda allows at least 360 hours. The dealership expects to perform the modification to approximately 60 vehicles. Use Exhibit 6.5.
What is your opinion of Honda's allowed rate and the mechanics' performance?
Note: Round your answer to 1 decimal place.
Answer is complete but not entirely correct.
Average hours for each modification
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