Question

Ch4A-7 Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts; the second took 1,500 labor hours and $37,050 in parts; the third took 1,450 labor hours and $31,000 in parts; and the fourth took 1,275 labor hours and $31,492 in parts. The company expects “learning” to occur relative to labor and also relative to the pricing of parts from suppliers. Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. (Hint: There are two learning curves—one for labor and one for parts.) Use Exhibit 6.5. a. How many labor hours should Johnson estimate are needed for the additional 12 units? (Round your answer to the nearest whole number.) Estimated labor 16488 hours b. How much should Johnson estimate the parts cost will be for the additional 12 units? (Round your answer to the nearest dollar amount.) Estimated parts cost $ 414180.00

Answer 1