Chill Inc. plans to produce a advanced technology propeller design for airplanes. The company forecasts that employees, regardless of position, takes time to learn how to carry out a specific task or duty. The amount of time needed to produce the associated output is high. Then, as the task is repeated, their employees learn how to complete it quickly, and that reduces the amount of time needed for a unit of output as it gained experience already. Based on prior experience, it estimated that there is a 90% cumulative learning curve. Assume that the cumulative average cost in producing 1 unit of propeller is ₱8,000. Kindly use the table below for your reference and guide. Question: What is the cumulative average cost per unit and total manufacturing cost if its doubles it production? What is the cumulative average cost per unit and total manufacturing cost if it manufactures 32 units?
Chill Inc. plans to produce a advanced technology propeller design for airplanes. The company forecasts that employees, regardless of position, takes time to learn how to carry out a specific task or duty. The amount of time needed to produce the associated output is high. Then, as the task is repeated, their employees learn how to complete it quickly, and that reduces the amount of time needed for a unit of output as it gained experience already. Based on prior experience, it estimated that there is a 90% cumulative learning curve. Assume that the cumulative average cost in producing 1 unit of propeller is ₱8,000. Kindly use the table below for your reference and guide. Question: What is the cumulative average cost per unit and total manufacturing cost if its doubles it production? What is the cumulative average cost per unit and total manufacturing cost if it manufactures 32 units?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Chill Inc. plans to produce a advanced technology propeller design for airplanes. The company forecasts that employees, regardless of position, takes time to learn how to carry out a specific task or duty. The amount of time needed to produce the associated output is high. Then, as the task is repeated, their employees learn how to complete it quickly, and that reduces the amount of time needed for a unit of output as it gained experience already. Based on prior experience, it estimated that there is a 90% cumulative learning curve.
Assume that the cumulative average cost in producing 1 unit of propeller is ₱8,000. Kindly use the table below for your reference and guide.
Question:
What is the cumulative average cost per unit and total manufacturing cost if its doubles it production?
What is the cumulative average cost per unit and total manufacturing cost if it manufactures 32 units?
Transcribed Image Text:CUMULATIVE NUMBER OF UNITS
PRODUCED
AVE. COST PER UNIT
TOTAL MANUFACTURING COST
1
8,000
8,000
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