The production for a new product follows:
Month Units
1 4
2 5
3 6
4 7
The first unit will take 2,000 hours to produce and the learning rate is 90 percent.
Currently, the company employs 40 workers, who each work 200 hours regular time per month. In which months will overtime be needed for the production schedule shown? Refer to the copy of Table I.1 appended to this exam.
A) month 4 only
B) months 3 and 4 only
C) months 1 and 2 only
D) month 1 only
B
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