Answered: Manceville Air has just produced the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Manceville Air has just produced the first unit of a large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 116 hours of labor to manufacture. The company knows from past experience that this labor content will decrease significantly as more units are produced. In reviewing past production data, it appears that the company has experienced a 80% learning curve when producing similar designs. The company is interested in estimating the total time to complete the next 7 units.

Your job as the production cost estimator is to prepare the estimate. Refer to table below:

	80%	80%	85%
Unit Number (N)	Unit Time	Total Time	Unit Time	85% Total Time	90% Unit Time	90% Total Time
8	.512	5.346	.614	5.936	.729	6.574

Total manufacturing time for the=

Manufacturing time for the last 7 units (i.e., units 2 thru 8)=

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