1A2E AEROSUB INC. HAS DEVELOPED A NEW PRODUCT FOR SPACECRAFT THAT INC...

22. CSO: 1A2b LOS: 1A2e

Aerosub Inc. has developed a new product for spacecraft that includes the manufacture of

a complex part. The manufacturing of this part requires a high degree of technical skill.

Management believes there is a good opportunity for its technical force to learn and

improve as they become accustomed to the production process. The production of the

first unit requires 10,000 direct labor hours. If an 80% learning curve is used, the

cumulative direct labor hours required for producing a total of eight units would be

a. 29,520 hours.

b. 40,960 hours.

c. 64,000 hours.

d. 80,000 hours.