A staff assistant at Whitmere Corporation recently determined that the first four units completed in a new manufacturing process took 800 hours to complete,or an average of 200 hours per unit.The assistant also found that when the cumulative output produced doubles,the average labor time declines by 20%.On the basis of this information,how many total hours would Washington use if it produces 16 units?
A)128.
B)160.
C)1,280.
D)2,048.
E)An amount other than those listed abovE.

Question

Quizplus · Accepted Answer

The learning curve effect indicates that when cumulative output doubles, the average time per unit decreases by 20%. Starting with 200 hours per unit for the first 4 units, the average time per unit for the next 4 units (8 units total) is 160 hours, then 128 hours for the next 8 units (16 units total). Calculating total hours: 4 units x 200 hours + 4 units x 160 hours + 8 units x 128 hours = 2,048 hours.

A Staff Assistant at Whitmere Corporation Recently Determined That the First