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There is a question kaplan 2017 revision kit..
It says The time for the first batch of 50 units was 400 hour. learning effect where the learning rate is 90%. The rate of pay for labour is $12 per
hour.
The business had received and satisfied an order for 600 units but it has now received a
second order for another 800 units.
The value of b is = –0.152
What is the cost of second order.?The ans behind says total time for 1400 units — total time for 600 units.
I dont get the logic for taking 1400 units. can you please explain this?
The question no is 116. 2017 kaplan revision kit
The have already made 600 units. If they make another 800 units then they will have made 1400 units in total. With learning curves we can only calculate directly the cost for a complete number of units.
This is all explained in my free lectures on learning curves.
The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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