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above is a reference example, answer following questions and please and show work. thank you. other answers on here are wrong so please only answer
above is a reference example, answer following questions and please and show work. thank you. other answers on here are wrong so please only answer if comfortable.
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$2,000 Average cost of 100 ($800 ea) 1,000 2 800 Average cost of original 50 ($1,000 ea) 600 Average direct labor cost per unit produced 400 Average cost of 400 ($510 ea) 300 200 800 1,000 100 10 20 30 40 50 60 80100 200 300 500 Units produced Figure 14.6 I Estimating Labor Cost for the New Contract 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. An audit of product costs for the first 50 units established that the operation is subject to an 80 percent cumulative average leaming curve. What should ABC pay for the purchase of 350 more units? Solution: Instead of an 80% learning curve, the supplier believes that either an 85% or 90% learning curve will be more indicative of what will occur in the future (starting unit 51). What would be the unit cost of labor for the next 350 units using an 85% learning curve and a 90% learning curve? Show calculations that use the formulas that are provided in the posted learning curve articles. What would be the total price ABC should pay for the 350 units for an 80% learning curve for labor, for an 85% learning curve and for a 90% learning curve for labor? What % difference is this between the two assumptions of learning curves? What suggestions should ABC make to the supplier in order for the supplier to incur cost reductions at the 80% learning curve level? Fach team mombor choudhuid
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