Question

Electron, Inc., manufactures specialized machinery. The process is labor intensive. The time taken to manufacture the first unit of the machinery was 120 hours. The managers of electron expect a learning rate of 80 percent. Determine the average time taken to manufacture the second unit using the cumulative average-time learning curve model.

a. 70 hours
b. 72 hours
c. 90 hours
d. 96 hours

Answer 1

To calculate the average time for the second unit using the cumulative average-time learning curve model with an 80% learning rate, multiply the time for the first unit (120 hours) by 0.80, resulting in 96 hours.

Step-by-step explanation:

The question asks to determine the average time taken to manufacture the second unit of specialized machinery using the cumulative average-time learning curve model, given a learning rate of 80 percent. As per the learning curve model, the time taken to produce the second unit should be the product of the time taken for the first unit and the learning rate. Since the first unit took 120 hours, the calculation will be 120 hours × 0.80 (80%) which equals 96 hours. Therefore, the correct answer is 96 hours for the average time taken to manufacture the second unit.