company's production process has an 85 percent learning curve rate.The process has produced 1,000 units to date.process refinement is estimated to allow a future learning curve rate for the identical product of 75 percent.However,the initial unit made using the new process will take the same amount of time as the very first unit produced using the old process.At what point,using the new process,will the production rate exceed the production rate achieved by the old process? A)By the 50^th unit B)By the 80^th unit C)By the 100^th unit D)By the 120^th unit E)By the 250^th unit

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The learning curve rate is a measure of how much time it takes to produce a unit of output as a function of the cumulative number of units produced. A learning curve rate of 85% means that it takes 85% of the time to produce the second unit as it did to produce the first unit, 85% of the time to produce the third unit as it did to produce the second unit, and so on.The new process has a learning curve rate of 75%, which means that it takes 75% of the time to produce the second unit as it did to produce the first unit, 75% of the time to produce the third unit as it did to produce the second unit, and so on.The initial unit made using the new process will take the same amount of time as the very first unit produced using the old process. This means that the production rate using the new process will be the same as the production rate using the old process for the first unit.However, the production rate using the new process will start to exceed the production rate using the old process as the cumulative number of units produced increases. This is because the learning curve rate for the new process is lower than the learning curve rate for the old process.By the 50th unit, the production rate using the new process will be 75% of the production rate using the old process. By the 80th unit, the production rate using the new process will be 80% of the production rate using the old process. By the 100th unit, the production rate using the new process will be 85% of the production rate using the old process. By the 120th unit, the production rate using the new process will be 90% of the production rate using the old process. By the 250th unit, the production rate using the new process will be 95% of the production rate using the old process.Therefore, the production rate using the new process will exceed the production rate using the old process by the 50th unit.

Company's Production Process Has an 85 Percent Learning Curve Rate