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A facility has been producing widgets for several years. In the past it has manufactured 1500 units. Over time the production has increased in efficiency

A facility has been producing widgets for several years. In the past it has manufactured 1500 units. Over time the production has increased in efficiency and the cost has dropped significantly from the $300 that it cost to make the first unit.

Calculate the learning rate given the following information:

Lot

1

2

3

4

5

Production

200

350

420

400

430

Cost/Lot

$21,001.00

$34,987.00

$41,967.00

$38,824.00

$40,234.00

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