Phantom Co. makes technical products for mysterious customers. To make Product J24, the company recently recorded the following costs, which decline subject to an 85 percent cumulative learning curve.
Cumulative Number Average Labor
of Units Produced Costs per Unit
1............................................................................... $5,000
2 .............................................................................. 4,250
4............................................................................... ?
8............................................................................... ?
16............................................................................. ?
Complete the chart by filling in the cost amounts for volumes of 4, 8, and 16 units.