CAF-5 · Chapter 4 · Question 8 of 10
If the first unit of output requires 100 hours to manufacture and an 80% learning curve effect applies, what is the total time required to produce the first 4 units?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 256 hours
Explanation
1 unit = 100 hours cumulative average time. 2 units = 100 × 80% = 80 hours cumulative average time. 4 units (doubling again) = 80 × 80% = 64 hours cumulative average time. Total time for 4 units = 4 units × 64 hours = 256 hours.
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