if 500 labor hours were required to produce the first unit, how many will be required for the 7th unit if a 95% learning curve is in effect?
Expert Answer
Learning curve
Time required for the nth unit is calculated by the following formula
Tn = T1*r(LN(n)/LN(2)) , where r is the learning rate, LN() is natural logarithm.
Hours required for the 7th unit, T7 = T1*r(LN(7)/LN(2))
= 500*0.952.807
= 432.94 hours
~ 433 hours