Explore BrainMass

Explore BrainMass

    Cumulative Total Time

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 3-4. What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?
    a - 100 hours
    b - 80 hours
    c - 160 hours
    d - 20 hours

    © BrainMass Inc. brainmass.com June 3, 2020, 11:50 pm ad1c9bdddf
    https://brainmass.com/business/accounting/cumulative-total-time-301613

    Attachments

    Solution Preview

    The production of 2,000 units is equal to 2 batches (1,000 units per batch).
    Doubling the number of ...

    Solution Summary

    This solution analyzes the cumulative total time to produce a certain number of units based on a cumulative average-time learning curve.

    $2.19

    ADVERTISEMENT