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Question :
Bike Racers Co’s management expects the assembly time to gradually improve with experience, and has estimated a 80% learning curve.First bike : Assembly labour (50 hours)
Mr Wiggo, a racing team manager, approached Bike Racers and committed to buy the first bike, as well as the second bike produced.
What price should be charged by Bike Racers Co for the second bike produced ?
Answer for this question :
No. of bikes Cumulative average time (hours) Total time to date (hours)
1 50
2 (x0.8) 40 80Dear Tutor ,
I curious how to get the : “Total time to date (hours) = 80” ?regards,
Tammy40 is the average time per unit when 2 units are produced.
If 40 is the average time, then the total time for 2 units is 2 x 40 = 80 hours.
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