What learning curve is the company performing at

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1. If the first unit of production requires 1,200 hours and the 150th unit requires 315 hours, then what learning curve is the company performing at?

2. A company has decided to bid on a follow-on contract for 500 units of a product. The company has already produced 2,000 units on a 75 percent learning curve. The 2000th unit requires 80 hours of production time. If a fully burdened hour is $80 and the company wishes to generate a 12 percent profit, how much should be bid?

Reference no: EM131244884

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