- This topic has 3 replies, 2 voices, and was last updated 14 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Part 🙂 i)
It says in the question that 50% of variable costs would be affected by a learning and experience curve and will apply to each batch produced. So why does the amount not affected by learning stay at $30,000? For not affected amount for 40,000 units I would have just did 50% of the variable cost again. Can someone please rephrase the text so it’s clearer?
50% of the cost of 10,000 units is subject to the learning curve effect, the other 50% is not.
What you are proposing would actually subject 100% of the cost to the learning curve effect
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.