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The time for the first batch of 50 units was 400 hours but the labour budget is the subject of a learning effect where the learning rate is 90%. The rate of pay for labour is $12 per hour.
The business had received and satisfied an order for 600 units but it has now received a second order for another 800 units.
The value of b is = –0.152
What will be the cost of this second order? (no decimals please)sir i dont understand why we cannot use 400/50=8hr/unit and then solve the equation. Why is this method of mine yielding a wrong asnwer? in the solution provided they seem to be using batch method
thank you.
i plugged in ‘a’ as 8 and then subsequently followed the right procedure using units everywhere instead of batches, but apparently am getting a wrong answer. why??
Learning occurs when actions are repeated.
If they make a batch of 50 they are not repeating 50 times. Think about making bread in batches of 50 – they are all prepared and cooked together. The learning occurs as more batches are made, not as more individual units are made.
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