Figure 3-9 Abboud Company Is Planning to Introduce a New

Multiple Choice

Figure 3-9 Abboud Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units.The variable labor 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.
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Refer to Figure 3-9.What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?

A) 100 hours
B) 80 hours
C) 160 hours
D) 20 hours