Question

A product that is very labor intensive assembled at Boyds Aero Structure in Memphis has an average labor cost of $20/hr.

Answer 1

Answer:

correct answer for learning curve percentage is A. 90%

Explanation:

given data

average labor cost = $20/hr

Time 1st  unit = 10 hours

Time 4th unit =  8.1 hours

solution

we apply here formula for learning curve that is

Time (x)  units = Time 1st unit ×  $x^{\frac{ln\ leaning\ rate }{ln\ 2}}$

so

time 4th unit = Hours 1st unit ×  $4^{\frac{ln\ leaning\ rate }{ln\ 2}}$

8.1 = 10 ×  $4^{\frac{ln\ leaning\ rate }{ln\ 2}}$

ln 0.81 = ${\frac{ln\ leaning\ rate }{ln\ 2}}$ × ln 4

solve it we get

learning rate = 90%

so correct answer is A. 90%