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jiahd12346 jiahd12346
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6 years ago
A company manufactures computer parts. They have received an order for 100 custom disc drives. It is estimated that the first drive will take 20 hours of shop time and an 80 percent learning curve is expected. The labor rate is 15.00, and the pricing policy is to charge 3 times the labor cost.
 a. How many hours will the 100th disc drive take?
  b. How many hours will the entire order take?
  c. What is the price of the entire order?
  d. What is the price per unit?
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#1
6 years ago
a. Hours for the 100th disc drive = (20) (0.227) = 4.54
b. Hours for the entire order = (20) (32.65) = 653
c. Cost of the total order = (653) (15.00) (3) = 29,385
d. Price per disc drive = 29,385 / 100 = 293.85
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