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National Company is planning to introduce a new product with an 90 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 total labor cost for the cumulative total time using the incremental unit-time learning curve to produce 2,000 units?

National Company is planning to introduce a new product with an 90 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 total labor cost for the cumulative total time using the incremental unit-time learning curve to produce 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 90 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 total labor cost for the cumulative total time using the incremental unit-time learning curve to produce 2,000 units?

 

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