Question

Refer to the table below. Assume that the company involved now finds that the learning rate is 85 percent. The 85 percent learning rate coefficient is-0.234465; that is b-0.234465 in the formula Required Using the formula, Y= aX. compute the labor time and costs for 5, 6, and 7 units. (Round your intermediate calculations (except for coefficient) and final answers to 2 decimal places.) ime Required to roduce the Xth Unit (i.e., the last Cumulative Total Time in Labor Hours(2) Unit Total Cost(3) Average Cost per Unit(4) uced single unit produced)1 100.00 85.00 77.29 72.25 185.00 262.29 334.54 100.00 $5,000.00 S 5,000.00 9,250.00 13,114.57 16,727.07 4,625.00 4,371.52 4,181.77 6141 593.58 29,679.22 3,709.90

Answer 1

In present problem Y aXAb we have values b 0.23447 X Number of units produced, a labor time required to produce first product 100 hours Labor rate per hour total cost for first product / labour hours for first product 5000/100 on putting the values in equation we will get the following table $50 per hour 0.23447 cumulative total time in labour hours Average Units Labor time required to Labor rate per hour 2 Total cost cost per produced produce the X th unit unit 100 85 77.29 72.25 68.57 65.7 63.37 61.41 100 185 262.29 334.54 403.11 468.81 532.18 593.59 3 1x 2 4 3/ (x) 5000 4625 50 13114.5 4371.5 16727 4181.75 50 20155.5 4031.1 50 23440.5 3906.75 26609 3801.29 50 29679.5 3709.94 50 50 9250 50 4 5 6 50