Green Company Is Planning to Introduce a New Product with a 75

Multiple Choice

Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in batches of 1,500 units. The variable labor costs are $55 per unit for the first 1,500-unit batch. Each batch requires 200 hours. There are $15,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 3,000 units?

A) 350 hours
B) 250 hours
C) 300 hours
D) 255 hours