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8. Exercise 8.9 The Emerson Corporation, a manufacturer of airplane landing gear equipment, is trying to develop a learning curve model to help forecast labor costs for successive units of one of its products. From past data, the firm knows that labor costs of the 25th, 75th, and 125th units were $900, $700, and $600, respectively. Using the learning curve equation for these labor costs, log10 C = 3.30351 0.24824 × log10Q What is the estimated cost of the 200th unit of output? $567 $557 $540 The model estimates that the labor cost for the 50th unit is $761.65. What is the approximate percentage of learning at Emerson? 73% 85% 97%

8. Exercise 8.9 The Emerson Corporation, a manufacturer of airplane landing gear equipment, is trying to develop a learning curve model to help forecast labor costs for successive units of one of its products. From past data, the firm knows that labor costs of the 25th, 75th, and 125th units were $900, $700, and $600, respectively. Using the learning curve equation for these labor costs, log10 C = 3.30351 0.24824 × log10Q What is the estimated cost of the 200th unit of output? $567 $557 $540 The model estimates that the labor cost for the 50th unit is $761.65. What is the approximate percentage of learning at Emerson? 73% 85% 97%

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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8. Exercise 8.9 The Emerson Corporation, a manufacturer of airplane landing gear equipment, is trying to develop a learning curve model to help forecast labor costs for successive units of one of its products. From past data, the firm knows that labor costs of the 25th, 75th, and 125th units were $900, $700, and $600, respectively. Using the learning curve equation for these labor costs, log10 C = 3.30351 0.24824 × log10Q What is the estimated cost of the 200th unit of output? $567 $557 $540 The model estimates that the labor cost for the 50th unit is $761.65. What is the approximate percentage of learning at Emerson? 73% 85% 97%
Transcribed Image Text:8. Exercise 8.9 The Emerson Corporation, a manufacturer of airplane landing gear equipment, is trying to develop a learning curve model to help forecast labor costs for successive units of one of its products. From past data, the firm knows that labor costs of the 25th, 75th, and 125th units were $900, $700, and $600, respectively. Using the learning curve equation for these labor costs, log10 C = 3.30351 0.24824 × log10Q What is the estimated cost of the 200th unit of output? $567 $557 $540 The model estimates that the labor cost for the 50th unit is $761.65. What is the approximate percentage of learning at Emerson? 73% 85% 97%
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