The Direct Labour Time Required to Produce the First Sailboat

Multiple Choice

The direct labour time required to produce the first sailboat of a particular model was 3000 hours. If the company believes that an 80% learning curve applies to the production of this model sailboat then the direct labour time required to produce the 2^nd boat is estimated to be

A) 600 hours.
B) 2,400 hours.
C) 3,600 hours.
D) 4,000 hours.