ExpertEasy2 marksShort Answer
ACCA · Question 11 · Quantitative Analysis in Budgeting
Section A
MarineBuild is constructing luxury yachts. The assembly of the yachts follows an 80% learning curve. The time taken to assemble the first yacht was 2,000 hours.
The learning curve formula is Y = ax^b, where for an 80% curve, b = -0.3219.
Calculate the total time required to assemble the FIRST TWO yachts. (Enter the number only).
Section A
MarineBuild is constructing luxury yachts. The assembly of the yachts follows an 80% learning curve. The time taken to assemble the first yacht was 2,000 hours.
The learning curve formula is Y = ax^b, where for an 80% curve, b = -0.3219.
Calculate the total time required to assemble the FIRST TWO yachts. (Enter the number only).
How to approach this question
Use the tabular method or formula. For 2 units, the average time per unit is 2,000 * 0.80. Total time is Average Time * 2.
Full Answer
Using the doubling rule: As production doubles from 1 to 2 units, the cumulative average time per unit becomes 80% of the time for the first unit.
Average time for 2 units = 2,000 hours × 0.80 = 1,600 hours.
Total time for 2 units = 1,600 hours × 2 = 3,200 hours.
Common mistakes
Calculating the time for the 2nd unit only (3,200 - 2,000 = 1,200) instead of the total time for the first two units.
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