What is the estimated time for the 40th unit? 2) How many total labor hours will be needed to satisfy this second batch (#16 - #40) ? 3) What is the average time to produce this second batch?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Schumacher & Company recently introduced a new ATM system. The Company’s MoneyMatic Division assembles these systems from purchased hardware, using its in-house developed software. It just completed assembling the first batch of 15 units. The last unit (#15) produced required 50 hours of labor, and the learning rate was estimated to be 94 percent for these systems. Another order for 25 units (#16 - #40) of the same system has just arrived.

1) What is the estimated time for the 40th unit?

2) How many total labor hours will be needed to satisfy this second batch (#16 - #40) ?

3) What is the average time to produce this second batch?

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