Estimate of the cost of the entire contract

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1. Sara and Blake work for ToyRUs assembling bicycles for customers. Assembly of a swing set has a learning rate of 75%. They forgot to time their effort on the first bike, but spent 4.75 hours on the second. They have a total of 11 to complete. Determine approximately how much time will (or did) take for:

a. the first unit
b. the 7th unit
c. all 11 units

2. Fargo Production has contracted with Johnson Services to overhaul the 15 robots at its plant. All the robots are similar and an 80% learning curve is appropriate. The number of hours that Johnson billed Fargo to complete the first robot was 150. Fargo pays Johnson $200 per hour for its services. Fargo wants to estimate the following:

a. How many hours will it take to overhaul the 10th robot?

b. How long will it take to complete robots 5 through 11, inclusive?

c. What is your estimate of the cost of the entire contract for overhauling all 15 robots?

Reference no: EM13228609

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