A Small Manufacturer Builds Wooden Pleasure Boats in a Craftsman

Essay

A small manufacturer builds wooden pleasure boats in a craftsman manner by traditional labour-intensive methods. The first boat is estimated to take 650 hours of skilled labour, which cost $40 per hour. They currently have three workers that can work 2,000 hours a year. They assume that there is a 90% learning rate. How many boats can they make in their first year?