Business, 30.03.2021 05:30 sweav4333

2. A welder and a carpenter decided to get out of the construction industry and build farm trailers instead. From building a few trailers on weekends, they estimated that the first trailer would take about $700 of their own labor to build and that an 85 percent learning rate can be anticipated on the cumulative average time as each trailer is built. (Note: They decided that their hourly wages should be no less than those they received in the construction trades.) The material costs for each trailer will be about $500, and the craftsmen do not see any way that this can be reduced. They estimate that each trailer can be sold for $1,000. In addition to making their wages on labor, they want to make 15 percent profit on the trailer materials. How many trailers must be built before this rate of profit can be realized

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2. A welder and a carpenter decided to get out of the construction industry and build farm trailers...

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