This assignment uses the Learning Curve Excel 'tool.' See the ML70x micro-lessons before starting.

Your company, Springfield Inc., is considering developing and building a new electric passenger car. Average variable costs of production are expected fall as in Wright's learning curve model. You have the following information:

Total research, development, testing, and evaluation (RDT&E) costs (this is a fixed cost; not a variable cost): $90 million

The following costs are variable costs (they don't include the $90 million)

Expected cumulative average cost of the first 100 cars: $160 thousand

Expected cumulative average cost of the first 350 cars: $121 thousand

From this information, report the learning rate and complete the following table.

Learning rate:

Average Fixed |Average Variable Total # of cars Total RDT&E Costs Cost Average Total Cost Marginal Cost* 2 4 16 32 64 128 256 512 1,024 2,048 4,096 8,192 16,384 32,768 65,536 131,072