Use the following to answer questions:
YinLee Corp. is looking to introduce a new product with an 80% cumulative learning curve for production batches of 500 units. The variable production and selling costs, all subject to learning, are $20 per unit for the first 1,000-unit batch. There are $15,000 in fixed costs not subject to learning.
-What is the average cost per unit at a production level of 2,000 units?
A) $18.20
B) $23.50
C) $26.40
D) $32.60

Question

Quizplus · Accepted Answer

The Answer of Use the following to answer questions:
YinLee Corp. is looking to introduce a new product with an 80% cumulative learning curve for production batches of 500 units. The variable production and selling costs, all subject to learning, are $20 per unit for the first 1,000-unit batch. There are $15,000 in fixed costs not subject to learning.
-What is the average cost per unit at a production level of 2,000 units?
A) $18.20
B) $23.50
C) $26.40
D) $32.60

Use the Following to Answer Questions