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1) CRUSH CO
Crush Co has developed a new product. The first batch of 100 units will take 1.500 labour hours to produce. Crush Co has estimated that there will be an 85% learning curve that will continue until 6.400 units have been produced. Batches after this level will each take the same amount of time as
the 64th batch. The batch size will always be 100 units.
Note: The learning index for an 85% learning curve is -0.2345 Ignore the time value of money.
1 Calculate the cumulative average time per batch for the first 64 batches.
A. 567.7 hours
B. 565.5 hours
C. 433.3 hours
D. 570 hours
How should it be done?
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