The Labour Cost to Construct the First Unit of a Special

Multiple Choice

The labour cost to construct the first unit of a special piece of equipment was $126,000. If labour costs are subject to a 90% learning curve, what will be the cost to build the second unit? Use the following values as needed to respond:
Ln(95%) / ln(2) = -0.074
Ln(90%) / ln(2) = -0.152
Ln(85%) / ln(2) = -0.234
Ln(80%) / ln(2) = -0.322
Ln(75%) / ln(2) = -0.415
Ln(70%) / ln(2) = -0.515

A) $126,000
B) $113,000
C) $100,800
D) $113,400