# Learning Curve Calculations

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1) The first unit required 9800 hours to manufacture. The company expects to experience an 85% unit learning curve. Estimate the cost of the 20th unit. Round intermediate calculations to 4 decimal places.

a) 5408 hours

b) 4855 hours

c) 23112 hours

d) 4155 hours

2) Given the following information, determine the equation for the unit formulation. (Round intermediate calculations to 4 decimal places)

Unit Number (X) Unit Cost (Y)

1 600.00

2 578.00

3 565.51

4 555.81

a) Y = (600)(X)0.6931

b) Y = (600)(X)-0.0539

c) Y = (600)(X)-0.1047

d) Y = (600)(X)0.9300

3) Given the following unit learning curve equation, which statement is correct?

Y=1250(X)-0.184916

a) Y represents the cost of the 1250th unit

b) The slope equals 92%

c) The slope equals 87.97%

d) Y is the cost of the first unit.

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##### Solution Summary

3 learning curve problems are solved in an attached Word document.

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