A Company Negotiates a Price for Two Aircraft That Includes

Multiple Choice

A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 40%, how will the total time to complete both aircraft change?

A) no change
B) −10 hours
C) +10 hours
D) −30 hours
E) +30 hours