Centurion Processing Finishes the First Unit in 120 Hours and Learns

question 6

Multiple Choice

Centurion Processing finishes the first unit in 120 hours and learns at a 70% rate. Their competitor, Ochenta Incorporated, completes their fist unit in 80 hours but learns at an 80% rate. If they match total output with each other how many units must each fierce rival make before Centurion's cumulative processing time is lower than Ochenta's?

• A) 30 units
• B) 33 units
• C) 36 units
• D) 39 units

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Definitions:

Lower Of Cost

An accounting principle requiring inventory to be recorded at the lower of its historical cost or market value.

Market

A venue or mechanism where buyers and sellers engage in the exchange of goods, services, or financial instruments.

LIFO Inventory

An inventory valuation method where the last items added to inventory are the first ones to be used or sold.