Learning Curve Model problem

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Medco, Inc. manufactures microsurgical instruments used in products such as minimally invasive surgical procedures. The primary customers for these products are hospitals. Hospitals require that the learning curves be employed in the bid process for awarding contracts. Medco is planning to bid on a 350-unit contract offered by Ohio State Medical Center. Medco estimates that the first unit will require 126 hours of direct labor to produce. The industry learning curve for this particular type of product is 78 percent. Determine the average number of labor hours required to produce the first 100 units. How many hours are required to produce 350 units?


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