Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A contractor was in the business of building storage tanks. The learning rate was 0 . 8 0 on doubled averages. He broke even on

A contractor was in the business of building storage tanks. The learning rate was 0.80 on doubled averages. He broke even on the twelfth unit, which brought the average of all the units to 1,500 hours per unit with a labor cost of $18,000 per unit. What was his profit margin on a contract for 30 such units? Assume that this was the first contract and that he was paid the same price per storage tank. Give the profit margin in dollars and in percent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Great Boss Great Management

Authors: S. M. H. Gibson

1st Edition

9798842893430

More Books

Students also viewed these General Management questions