A Company Can Produce a Small Lot of Products the First

question 21

Multiple Choice

A company can produce a small lot of products the first time at a cost of $2,000. If their 85 percent learning curve allows them to reduce their costs on each lot, what is the total cost of producing 5 lots?

• A) $10,000.00
• B) $9,376.50
• C) $8,062.00
• D) $4,031.00
• E) $1,191.20