A Company Is Preparing a Bid on a Government Contract

Multiple Choice

A company is preparing a bid on a government contract for 40 units of a certain product. The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours.If a contract for 30 units is canceled after the first 20 units, approximately how much of the expected total direct labor will have been expended to that point?

A) 73 percent
B) 55 percent
C) 61 percent
D) 50 percent
E) It is impossible to say without additional information.