You Are a Consultant Specializing in Estimating the Costs After

Multiple Choice

You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetition. Your client can produce a product the first time at a cost of $2,500. If their 65 percent learning curve allows them to reduce their costs on each product, what is the total cost of producing 400 units of the new product?

A) $100,000
B) $78,900
C) $58,600
D) $45,765
E) $37,850