NUBD Company is planning to introduce a new product with an 90% learning rate for production for batches of 1,000 units. The variable labor costs are 30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are 10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?
NUBD Company is planning to introduce a new product with an 90% learning rate for production for batches of 1,000 units. The variable labor costs are 30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are 10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?
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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NUBD Company is planning to introduce a new product with an 90% learning rate for production for batches of 1,000 units. The variable labor costs are 30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are 10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?
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