Joe's Manufacturing is considering bidding on a small order for 5 units. Based on similar products that they have made in the past, they believe that the first unit will take 500 labor hours

They also believe that there will be an 80% learning curve. How many hours of labor should Joe include for his bid?

From Table E.3, the total time factor for 5 units and 80 percent learning is 3.738. The total number of labor hours for all five units would be 500 ? 3.738 = 1,869 hours.