A Firm Will Build 8 Units of a Product

question 12

Multiple Choice

A firm will build 8 units of a product. All costs are subject to an 85% learning curve. The first unit cost $75,000 to build. If the firm values inventory and cost of goods sold at the average cost for all units in the production run, what will be the cost to produce the second unit? Use the following values as needed to respond:
Ln(95%) / ln(2) = -0.074
Ln(90%) / ln(2) = -0.152
Ln(85%) / ln(2) = -0.234
Ln(80%) / ln(2) = -0.322
Ln(75%) / ln(2) = -0.415
Ln(70%) / ln(2) = -0.515

• A)$63,750
• B)$69,375
• C)$75,000
• D)Some other amount

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Definitions:

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A psychotherapeutic approach based on the theories of Carl Jung, focusing on the integration of the conscious and unconscious aspects of the mind to achieve individuation and psychological wholeness.