Wonder Company Is Planning to Introduce a New Product with an 80

Multiple Choice

Wonder Company is planning to introduce a new product with an 80 percent incremental unit-time learning curve 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. What is the cumulative total time (labor hours) to produce 2,000 units?

A) 180 hours
B) 160 hours
C) 100 hours
D) 80 hours