A Metal Works Fabricator Is About to Release a New

question 55

Essay

A metal works fabricator is about to release a new model of his firm's copper sculpture and fountain. The operations manager estimates that this product is subject to a 90 percent learning rate on labor only-the material bill is not affected by experience. The firm prices its work based on cost-the sum of materials plus 30 percent and labor plus 50 percent. (This allows the firm to practice a little "demand management" for its very popular works.) The first item has already been finished; the material bill was $800 and labor totaled 40 hours. The firm pays its metalworking artisans an average of $18 per hour. What should be the asking price of the first unit?
The second?

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Definitions:

Bipolar Disorder

A mental health condition marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear strong enough to interfere with one's daily activities.

Affective Disorder

A category of psychiatric disorders characterized by mood disturbances, such as depression or bipolar disorder.

Cognitive-Behavioral Therapy

A form of psychological treatment that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.