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. 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 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
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. 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 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
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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Ch.6 Q 7
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Step 1
Given,
First unit took T1 = 2000 hours
Purchased $39000 worth
Second unit took T2 = 1500 hours
Purchased $37050 worth
Third unit took T3 = 1450 hours
Purchased $31000 worth
Third unit took T3 = 1275 hours
Purchased $31492 worth
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