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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Learning curve effect june 2016 examiner report question section a
A company has started production of a new product and has found that the first 10 units of production took 120 hours. the next 30 units produced took a further 150 hours
dear tutor need help
The first batch of 10 units took 120 hours.
When they make an extra 30 units, then will have made 40 units which is 4 batches of 10 units.
The total time for 4 batches is 120 + 150 = 270 and therefore the average time per batch is 270 / 4 = 67.5 hours.
Going from 1 batch to 4 batches means doubling twice.
Therefore learning rate is the square root of 67.5/120 = 0.75 (or 75%)
Dear Tutor let us do in this way
C.P.U————C.A.T.p.u———-C.T.Hours—–Incr.num.units—–Incr.total hours
1———————120—————–120——————-1——————120
2———————??????——————??????1——————-?????????
4————————67.5—————-270————2——————–150
in the question section I became stuck
But I have explained how to do it in my previous reply and it is the same way that I do it in my lectures!
