Question 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
Question 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
Question 3) Given the following unit learning curve equation, which statement is correct?
Y=1250(X)-0.184916
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.