Ch4A-7 Johnson Industries received a contract to develop andproduce four high-intensity long-distance receiver/transmitters forcellular telephones. The first took 2,000 labor hours and $39,000worth of purchased and manufactured parts; the second took 1,500labor hours and $37,050 in parts; the third took 1,450 labor hoursand $31,000 in parts; and the fourth took 1,275 labor hours and$31,492 in parts. The company expects “learning” to occur relativeto labor and also relative to the pricing of parts from suppliers.Johnson was asked to bid on a follow-on contract for another dozenreceiver/transmitter units. (Hint: There are two learningcurves—one for labor and one for parts.) Use Exhibit 6.5. a. Howmany labor hours should Johnson estimate are needed for theadditional 12 units? (Round your answer to the nearest wholenumber.) Estimated labor 16488 hours b. How much should Johnsonestimate the parts cost will be for the additional 12 units? (Roundyour answer to the nearest dollar amount.) Estimated parts cost $414180.00
