You are provided with the following information: Cumulative production Direct labour needed to make first machine...

 

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You are provided with the following information: Cumulative production Direct labour needed to make first machine Learning curve Direct labour costs Direct material costs Fixed cost in total, absorbed on a per unit basis Required: Q.2.1 Q.2.2 Q.2.3 Value 1 000 hours 60% R5 per hour R1 800 per machine R12 000 Using the learning curve theory and the information provided above, calculate the expected average unit cost of producing: Q.2.1.1 8 machines. Q.2.1.2 32 machines. [Round your answers off to two decimal places, where applicable.] Your friend is interested in finance. Explain to him/her what the Learning Curve Theory is. List the three ratios that can be used to test the reliability of a cost equation. (24) (3) (3) You are provided with the following information: Cumulative production Direct labour needed to make first machine Learning curve Direct labour costs Direct material costs Fixed cost in total, absorbed on a per unit basis Required: Q.2.1 Q.2.2 Q.2.3 Value 1 000 hours 60% R5 per hour R1 800 per machine R12 000 Using the learning curve theory and the information provided above, calculate the expected average unit cost of producing: Q.2.1.1 8 machines. Q.2.1.2 32 machines. [Round your answers off to two decimal places, where applicable.] Your friend is interested in finance. Explain to him/her what the Learning Curve Theory is. List the three ratios that can be used to test the reliability of a cost equation. (24) (3) (3)

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The learning curve theory states that as an organization gains experience in producing a particular ... View the full answer