[precious]

So sorry to bother you John,
But the question is about how quickly the workers were able to learn not how long it took them to produce 8 units. You thought us how to calculate time taken to produce any unit.
But at the end of the second lecture on learning curve u thought us how to calculate learning rate of producing a product.

[precious]

Thank you John.
I quite understand now.
The $3 is gotten by subtracting the expected selling price ($8) from the unit cost of Sale ($5) then this will be used to multiply the sales unit per month until we get to break even.
Thank you. 🙂

[precious]

I’m sorry I didn’t realize i did not call out the question,
The question is:
The costs for design and development of a new product are expected to be $800,000. The time from original product concept to market launch will be 8 months. the expected selling price for the product is $8 per unit and the unit cost of sale will be $5. Expected sales per month in the period after product lunch are:

MONTH SALES
1 40,000
2 60000
3 80,000
4 100,000
What is the break even time for this product?
Please can you help me now please…
Thank you.

[precious]

Thank you John!:)

[precious]

Thank you John,
It seem a lot clearer now. 🙂

[precious]

Sir,
For the same question as above (Life Cycle Test question 2)
I thought the total life cycle cost per unit is supposed to be divided by estimated total sales i.e

(50,000+(100000*5)+10,000)= 560,000

560000/100,000=5.6.
Please correct me if I’m wrong.

[Author]

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