The first unit of output of a new product requires 270 hours. A 75% learning curve applies. How long will it take to produce the next three units?
It will take ________ hours to produce the next three units.
The correct answer is: 337.5.
1 unit will take 270 × 1 = 270 hours, 2 units will take 0.75 × 270 × 2 = 405 hours and 4 units will take (0.75 × (0.75 × 270) × 4) = 607.5 hours.
The next three units will therefore take 607.5 - 270 = 337.5 hours.
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