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Learning Curve Calculations

1) The first unit required 9800 hours to manufacture. The company expects to experience an 85% unit learning curve. Estimate the cost of the 20th unit. Round intermediate calculations to 4 decimal places.

a) 5408 hours
b) 4855 hours
c) 23112 hours
d) 4155 hours

2) Given the following information, determine the equation for the unit formulation. (Round intermediate calculations to 4 decimal places)
Unit Number (X) Unit Cost (Y)
1 600.00
2 578.00
3 565.51
4 555.81
a) Y = (600)(X)0.6931
b) Y = (600)(X)-0.0539
c) Y = (600)(X)-0.1047
d) Y = (600)(X)0.9300

3) Given the following unit learning curve equation, which statement is correct?
a) Y represents the cost of the 1250th unit
b) The slope equals 92%
c) The slope equals 87.97%
d) Y is the cost of the first unit.

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Solution Summary

3 learning curve problems are solved in an attached Word document.