A Company Can Produce a Small Lot of Products the First

question 32

Multiple Choice

A company can produce a small lot of products the first time at a cost of $3,000. If their 65 percent learning curve allows them to reduce their costs on each lot, what is the cost of producing the 20^th lot?

• A) $60,000
• B) $18,585
• C) $1,950
• D) $466.20
• E) $155.40