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National Company is planning to introduce a new product with an 85 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning.   What is the cumulative average time per batch using the incremental unit-time learning curve for 2,000 units?

National Company is planning to introduce a new product with an 85 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning.   What is the cumulative average time per batch using the incremental unit-time learning curve for 2,000 units?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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National Company is planning to introduce a new product with an 85 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning.

 

What is the cumulative average time per batch using the incremental unit-time learning curve for 2,000 units?

 

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