12 Westem Turbine, Inc., has just completed the production of the 10th unit of a new high-...

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12 Westem Turbine, Inc., has just completed the production of the 10th unit of a new high- efficiency turbine/generator. Its analysis showed that a learning rate of 85 percent existed over the production of the 10 units. If the 10th unit contained labor costs of $2.5 million, what price should Westem Turbine charge for labor on units 11 and 12 to make a profit of 10 percent of the selling price?

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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