A supplier has an 80% rate of learning and has informed you that this rate of learning
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Question:
A supplier has an 80% rate of learning and has informed you that this rate of learning occurs each time production (order quantity) doubles. Given the information in the table below, what is the total contract cost for 50,000 units (round to the nearest $1.00)?
25,000 units
50,000 units
Labor
4
Material
8.50
Overhead (150% of Labor)
6
Total Factory Cost
18.50
SGA (10% of Factory Cost)
1.85
Total Cost (per unit)
20.35
Total Contract Cost
$508.750
Expert Answer:
To calculate the total contract cost for 50000 units using the 80 rate of learning well use the conc... View the full answer
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