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The Direct Labor Time Required to Produce the First Sailboat

Question 22

Multiple Choice

The direct labor time required to produce the first sailboat of a particular model was 3,000 hours.If the company believes that an 80% learning curve applies to the production of this model sailboat,then the direct labor time required to produce the second boat is estimated to be


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

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