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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Question
Ch.6 Q 7
Transcribed Image Text:Johnson Industries received a contract to develop and produce four high-Intensity long-distance recelver/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
Transcribed Image Text:Exhibit 6.5
Unit
1
2
3
4
5
6
7
8
9
10
12
14
16
18
20
22
24
25
30
35
40
45
50
60
70
80
90
100
120
140
160
180
200
250
300
350
400
450
500
600
700
800
900
60%
1.000
1.600
1,000
1,200
1,400
1,600
1,800
2045
2.405
2.210
2.977
3.216
3.432
3.630
3813
4.144
4438
4.704
4.946
5.171
5.379
2,000
2.500
3,000
5.574
5.668
6.097
6.478
6.821
7.134
7.422
7,941
8401
8.814
9.191
9.539
10.16
10.72
11.21
11.67
12.09
13.01
13.81
14.51
15.14
15.72
16.26
17.21
18.06
18.82
19.51
Improvement Curves: Table of Cumulative Values
65%
1.000
1.650
2.155
2.578
2946
3.274
3.572
3.847
4.102
4.341
4.780
5.177
5.541
5.879
6.195
6.492
6.773
6.909
7.540
8.109
8.631
9.114
9.565
10.39
11.13
11.82
12.45
13.03
14.11
15.06
15.97
Cumulativo Improvement Factor
70%
75%
80%
1.000
1.000
1.700
1.750
2.268
2.758
3.195
3.593
3.960
4.380
4.303 4.802
4.626
5.204
5.589
6315
6.994
7.635
8.245
8.828
9.388
9928
10.19
16.79
17.55
19.28
20.81
22.18
23.44
24.60
25.68
27.67
29.45
20.15
21.30 36.59
22.32
38.92
4.931
5501
23.23
41.04
24.06
43.00
24.83 44.84
26.53 48.97
27.99
52.62
6.026
6.514
6.972
7.407
7.819
8.213
8.404
25.48
28.56
31.34
33.89
36.26
38.48
40.58
44.47
48.04
31.09 51.36
32.60
54.46
31.01
57.40
9.305 11.45
10.13
10.90
11.62
12.31
13.57
14.74
24.14
15.82
1683 22.67
17.79
24.18
19.57
21.20
22.72
62.85
67.85
72.49
2.384
2946
3459
3.934
76.85
80.96
90.39
98.90
1272
13.72
1477
15.78
17.67
19.43
21.09
27.02
29.67
32.17
34.54
36.80
42.05
46.94
51.48
55.75
59.80
63.68
70.97
77.27
84.18
90.26
96.07
107.0
117.2
126.8
135.9
144.7
165.0
1837
85%
1.000
1.850
2502
2.623
3.142
3.345
3738
4.031
4.299
4.688
4.834
5.322
5.346 5.936 6.574
5.839
6.533
7.290
1.000
1.800
6.315
7.116
7,227 8.244
8.092
9.331
8.920
10.38
9.716
11.41
10.48
11.23
11.95
12.31
14.02
15.64
17.19
18.68
20.12
22.87
25.47
27.96
30.35
32.65
37.05
41 22
45.20
49.03
52.72
61.47
69.66
77.43
84.85
91.97
98.85
112.0
124.4
136.3
147.7
158.7
179.7
199.6
218.6
236.8
254.4
296.1
335.2
12.40
13.38
14.33
14.80
36.80
40.32
43.75
50.39
56.78
62.95
68.95
74.79
88.83
102.2
115.1
127.6
139.7
151.5
174.2
196.1
217.3
237.9
257.9
296.6
333.9
369.9
90%
1.000
1900
17.09
19.29
21.43 26.54
23.50
29.37
25.51
32.14
29.41
37.57
33.17
42.87
48.05
53.14
58.14
67.93
4049
438.9
520.8
598.9
2746
3.556
4.339
5.101
5.845
7.994
9.374
10.72
12.04
13.33
14.61
15.86
17.10
17.71
20.73
23.67
77.46
86.80
95.96
105.0
126.9
148.2
169.0
189.3
209.2
228.8
267.1
304.5
341.0
95%
1.000
1.950
614.2
678.8
7423
897.0
1047
2.872
3.774
4.662
5.538
6.404
132.1
145.7
179.2
212.2
244.8
277.0
309.0
340.6
403.3
465.3
526.5
376.9
587.2
4122 647.4
481.2
766.6
548.4
7.261
8.111
8.955
10.62
12:27
13.91
15.52
17.13
18.72
20.31
21.10
25.00
28.86
32.68
36.47
40.22
47.65
54.99
62.25
69.45
76.59
90.71
104.7
118.5
884.2
1001
1116
1230
1513
1791
Expert Solution
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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