Nite-Site, Inc., manufactures image intensification devicesused in products such as night-vision goggles and aviator’s night-vision imaging systems. The primary customer forthese products is the U.S. military. The military requires thatlearning curves be employed in the bid process for awardingmilitary contracts. The company is planning to make a bidfor 120 image intensifiers to be used in a military vehicle.The company estimates the first unit will require 80 hours ofdirect labor to produce. The industry learning curve for thisparticular type of product is 92%. Determine how manyhours will be required to produce the 60th and 120th units.

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Author:WINSTON, Wayne L.
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Nite-Site, Inc., manufactures image intensification devices
used in products such as night-vision goggles and aviator’s

night-vision imaging systems. The primary customer for
these products is the U.S. military. The military requires that
learning curves be employed in the bid process for awarding
military contracts. The company is planning to make a bid
for 120 image intensifiers to be used in a military vehicle.
The company estimates the first unit will require 80 hours of
direct labor to produce. The industry learning curve for this
particular type of product is 92%. Determine how many
hours will be required to produce the 60th and 120th units.

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