Tracy has started her own business producing custom candles. For now, she is starting slowly, and offering only certain designs in the custom candles. Her favorite design, which was her first candle produced, had the following production time and costs: Tracy expects to experience a learning curve of 90% in making subsequent candles for her customers. Required:
a. Computer the total cost of for the first candle that Tracy produced.
b. Compute the cost of four candles if Tracy does not account for a learning curve.
c. Compute the total cost of four candles and the cost per unit if Tracy does account for a learning curve.

Question

Tracy has started her own business producing custom candles. For now, she is starting slowly, and offering only certain designs in the custom candles. Her favorite design, which was her first candle produced, had the following production time and costs:  Tracy expects to experience a learning curve of 90% in making subsequent candles for her customers. Required: 
a. Computer the total cost of for the first candle that Tracy produced.
b. Compute the cost of four candles if Tracy does not account for a learning curve.
c. Compute the total cost of four candles and the cost per unit if Tracy does account for a learning curve.

Quizplus · Accepted Answer

The Answer of Tracy has started her own business producing custom candles. For now, she is starting slowly, and offering only certain designs in the custom candles. Her favorite design, which was her first candle produced, had the following production time and costs:  Tracy expects to experience a learning curve of 90% in making subsequent candles for her customers. Required: 
a. Computer the total cost of for the first candle that Tracy produced.
b. Compute the cost of four candles if Tracy does not account for a learning curve.
c. Compute the total cost of four candles and the cost per unit if Tracy does account for a learning curve.

Tracy Has Started Her Own Business Producing Custom Candles