24. CSO: 1A2b LOS: 1A2e
Martin Fabricating uses a cumulative average-time learning curve model to monitor labor
costs. Data regarding two recently completed batches of a part that is used in tractor-
trailer rigs is as follows.
Batch Number Cumulative Average
Number of Units Hours Per Unit
1 50 20
2 50 16
If the same rate of learning continues for the next several batches produced, which of the
following best describes (1) the type (i.e., degree) of learning curve that the firm is
experiencing and (2) the average hours per unit for units included in the 201-400 range of
units produced (i.e., the last 200 units)?
Type (Degree) of Average Hours Per
Learning Curve Unit for Units 201-400
a. 20% 10.24.
b. 80% 10.24.
c. 80% 7.68.
d. 20% 3.84.
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