A Job Is Expected to Have a Learning Curve of 90

question 57

Multiple Choice

A job is expected to have a learning curve of 90 percent.The third unit required 16 hours.The twelfth unit should take approximately how many hours?

• A)2
• B)4
• C)7
• D)10
• E)13

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Definitions:

Margin of Safety

Margin of Safety represents the difference between actual sales and break-even sales, indicating the amount by which sales can decrease before a business incurs a loss.

Break-Even Point

The point at which total costs equal total revenues, indicating that a business is not making a profit but also not incurring a loss.

Variable Cost

Costs that vary in direct proportion to changes in a business’s level of activity or volume of output produced, such as materials and labor.

Differential Cost

The difference in cost between two alternative decisions or scenarios.