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John Moffat.
John Moffat.-
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reem1589
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16. Designs plc has just developed a new product, XL. It took 36 minutes to produce the first batch of five XLs. Designs estimates that it can enjoy an 85% learning effect on production of the product. In order to set a price for the product, a standard cost card is being formulated.
How much time per unit should be included for the production of the 201st to 250th items?
A. 7.20 minutes
B. 2.88 minutes
C. 3.10 minutes
D. 2.26 minutescould you please explain how to calculate the following question. the answer for this is D.
John Moffat
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You calculate the time for 50 batches and subtract the time for 40 batches – I explain this in my free lectures.
This gives you the time for 10 batches of 5 units each, so divide the result by 50 to get the time per unit.
reem1589
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