Abboud Company Is Planning to Introduce a New Product with an 80

Multiple Choice

Abboud Company is planning to introduce a new product with an 80 percent incremental unit-time learning curve for production for batches of 1,000 units. The variable labour costs are £30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are £10,000 in fixed costs not subject to learning. What is the cumulative total time (labour hours) to produce 2,000 units?

A) 100 hours
B) 80 hours
C) 160 hours
D) 180 hours