Long-distance receiver-transmitters for cellular telephones

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Reference no: EM132214417

Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,400 labor hours and $42,000 worth of purchased and manufactured parts; the second took 2,060 labor hours and $40,320 in parts; the third took 1,900 labor hours and $39,110 in parts, and the fourth took 1,730 labor hours and $37,900 in parts. Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. (Hint: There are two learning curves—one for labor and one for parts.) Use Exhibit 6.5

a. How many labor hours should Johnson estimate are needed for the additional 12 units? (Round your answer to the nearest whole number.) Estimated labor hours

b. How much should Johnson estimate the parts cost will be for the additional 12 units? (Round your answer to the nearest dollar amount.) Estimated parts cost $

Reference no: EM132214417

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