Key West To Go, located in Key West, Florida, builds and sells scooters. These are sold to several local shops in the area, who then rent the popular scooters to tourists. Key West To Go has just developed a new type of scooter called the Mini - designed for kids and teens. Certain issues with the manufacturing process had to be worked out, and consequently, it took Key West To Go 12 hours to build the first scooter. After that, however, the second scooter only took 10.8 hours to build and the third scooter 10.38 hours. Using the cumulative average-time learning model, what is the total time it would take to make four scooters? a. 45.29 hours
b. 38.88 hours
c. 43.32 hours
d. 42.90 hours

d. 42.90 hours

Explanation:

y = aQᵇ

y = average time to produce one more unit

a = the time it took to produce the first unit

Q = cumulative production

b = learning rate = [(log learning rate in %) / log 2] = -0.152003093

learning rate in % = 10.8 / 12 = 0.9 = 90%

cumulative quantity             average hours per unit               total hours

1                                                    12                                               12

2                                                   10.8                                            22.8

3                                                   10.38                                          33.18

4                                                   12 x 4⁻⁰°¹⁵²⁰⁰³⁰⁹³ = 9.72            42.90

answer; the nav calculated at the market close at 4: 00 pm new york time;

answerproduct line length; product mix width;