Figure 23-3 Abboud Company Is Planning to Introduce a New Product with Product

Multiple Choice

Figure 23-3
Abboud Company is planning to introduce a new product with an 80 percent cumulative 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.
-Refer to Figure 23-3. What is the individual unit time (labour hours) to produce 2,000 units?

A) 100 hours
B) 80 hours
C) 20 hours
D) 60 hours