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Carver Pump Company is making specialty pumps for an outdoor fountain. The company has built 5 prototype pumps and recorded the direct labor ( in
Carver Pump Company is making specialty pumps for an outdoor fountain. The company has built prototype pumps and recorded the direct labor in minutes for each pump as follows:
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The company prices their pumps at $ per direct labor hour. They have found that this pricing scheme covers labor, material and overhead costs and provides for a suitable profit. Using learning curve theory, how much should the company charge for pumps, assuming that they can use the prototype pumps in completing the order.
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