You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetition.Your client can produce a product the first time at a cost of $2,500.If their 65 percent Learning Curve allows them to reduce their costs on each product,what is the total cost of producing 400 units of the new product?
A)$100,000
B)$78,900
C)$58,600
D)$45,765
E)$37,850

Question

Quizplus · Accepted Answer

The 65% learning curve means that each time the production quantity doubles, the cost per unit is reduced to 65% of the previous cost. Using the learning curve formula, the total cost for 400 units can be calculated, resulting in $58,600.

You Are a Consultant Specializing in Estimating the Costs After