I Using Learning Curves Case I The production schedule for a new product follows

Question

I.3 Using Learning Curves

Case I.1

The production schedule for a new product follows.

Month	No. Units
1	15
2	20
3	40
4	35

The first unit took 100 hours to complete, and the rate of learning is 80 percent. Each employee works 40 hours per month. Refer to the copy of Table I.1 appended to this exam.

Using the information in Case I.1, what is the minimum number of employees needed in month 3?

A) fewer than 20 employees

B) greater than or equal to 20 employees but fewer than 30 employees

C) greater than or equal to 30 employees but fewer than 40 employees

D) greater than 40 employees

Answer

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