The direct labour time required to produce the first sailboat of a particular model was 3000 hours. If the company believes that an 80% learning curve applies to the production of this model sailboat then the direct labour time required to produce the 2^nd boat is estimated to be A) 600 hours. B) 2,400 hours. C) 3,600 hours. D) 4,000 hours.

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Quizplus · Accepted Answer

An 80% learning curve means that each time the cumulative production doubles, the average time per unit decreases to 80% of the previous average time. For the 2nd boat, the time is 80% of 3000 hours, which is 2400 hours.

The Direct Labour Time Required to Produce the First Sailboat