Produce four high-intensity long-distance receiver

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Reference no: EM132169548

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 1,820 labor hours and $36,120 in parts; the third took 1,580 labor hours and $33,230 in parts; and the fourth took 1,347 labor hours and $30,340 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? b. How much should Johnson estimate the parts cost will be for the additional 12 units?

Reference no: EM132169548

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