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Business, 24.11.2020 01:30 alissalhenry

The ABC Corporation has purchased 50 pieces of a specially designed electronic component at $2,000 per unit. In the $2,000 selling price, $1,000 represents direct labor. Instead of an 80% learning curve, the supplier believes that either a 85% or 90% learning curve will be more indicative of what will occur in the future (starting at unit 51). What would be the unit cost of labor for the next 350 units using a 85% learning curve and a 90% learning curve? Y = aXb. Y = cumulative average time per unit or batch. ... X = the cumulative units of production or, if in batches, the cumulative number of batches.

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