An 80% learning curve has been observed for the production of the MEERKAT system. If the 5th production unit''s recurring cost is $1 million, what will be the recurring cost for the 10th production unit? Assume that the production line is continuous and that the learning curve does not change.
a. $800,000
b. $900,000
c. $640,000
d. $500,000
1 answer
a is the correct answer.
2 answers