You Are a Consultant Called in to Estimate the Costs

Multiple Choice

You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition.You find a company 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