Suppose ZYZ company has the following information producing a product branded SPEEDY. The average cost (AC) for the first unit of SPEEDY is $1000. The price for the item is set at $400 per unit. The experience rate for SPEEDY is 85%.   Fill in the blanks based on the experience curve pricing using the information above. Ignore the numbers after two (2) digits from the decimal point.   Volume (X)            AC                           Price                       TR                            TC                            Profit

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose ZYZ company has the following information producing a product branded SPEEDY.

The average cost (AC) for the first unit of SPEEDY is $1000.

The price for the item is set at $400 per unit.

The experience rate for SPEEDY is 85%.

 

Fill in the blanks based on the experience curve pricing using the information above. Ignore the numbers after two (2) digits from the decimal point.

 

Volume (X)            AC                           Price                       TR                            TC                            Profit

 

1                              1000                       400                         ________             _______                 _______

 

 

2                              _______                 400                         ________             _______                 _______

 

 

4                              _______                 400                         ________             ________             _______

 

 

64                           _______                 400                         ________             ________             _______ 

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