Assume that it takes 100 hours to produce the first unit of a product,and the learning rate for this production process is 80%.Using the arithmetic approach,determine the labor hours required to produce the 16th unit.
A)100 hours
B)80 hours
C)51.2 hours
D)40.96 hours

Question

Quizplus · Accepted Answer

Using the arithmetic approach and the learning rate of 80%, we can calculate the time required to produce the 16th unit as follows:
* First unit = 100 hours
* Second unit = 100 x 0.8 = 80 hours
* Third unit = 80 x 0.8 = 64 hours
* Fourth unit = 64 x 0.8 = 51.2 hours
* Fifth unit = 51.2 x 0.8 = 40.96 hours (the 16th unit)
Therefore, the labor hours required to produce the 16th unit is 40.96 hours, which corresponds to choice D.

Assume That It Takes 100 Hours to Produce the First