1. Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below. Month Turbochargers 1 2 3 4 5 7 6 7 10 5 The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. What is the average number of working hours is required per month?

Principles of Accounting Volume 2
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Chapter10: Short-term Decision Making
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1. Your company is making experimental turbochargers for a new design of
high-powered farm tractors. The production schedule for these new
components is contained in the table below.
Month Turbochargers
1
2
3
4
5
7
6
7
10
5
The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your
experience with similar products, the learning factor is 85%. You have 20
employees, and each employee works 160 hours per month. What is the
average number of working hours is required per month?
Transcribed Image Text:1. Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below. Month Turbochargers 1 2 3 4 5 7 6 7 10 5 The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. What is the average number of working hours is required per month?
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