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Abboud Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor
Abboud Company is planning to introduce a new product with an 80 percent 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. Refer to Figure 3-9. What is the cumulative total time (labor hours) to produce 6,000 units based on the cumulative average-time learning curve?
a. 100 hours
b. 256 hours
c. 160 hours
d. 307 hours
I know the answer is D but can get the calculation correct
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