Hi, Sir.
How they calculated variable cost for 2nd and 3rd batches?
And also in general i find this question very difficult.
Hope i will not get this hard questions on wednesday!:(
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Bpp kit mock exam 2 section b question 2
10y ago#1The learning rate (using the doubling rule backwards) = sq root of (52.71 - 30)/30) = 0.87 or 87%
Therefore the variable cost for the second batch = (0.87 x 30) + 30 = 56.1
The total cost for 3 batches is 3 times the average cost per batch for three batches, which you get using the formula.
I do suggest that you watch my free lectures on learning curves - I really cannot type them all out here :-)
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