What do you gauge the purchaser should pay per unit for the following 700 pieces presuming the provider demonstrates a 75 % larning curve? What if the acquisition rate is really 85 % ? What do you gauge is the per unit cost of the following 700 pieces?

1. A: $ 178/unit at a 75 % Learning Curve
212/unit at an 85 % Learning Curve

2. Under what conditions can we utilize larning curves to gauge monetary values? In other words. when does the larning curve apply?

2. A: The Learning Curve is applicable when used for new merchandises or procedures that have a high potency for betterment. such as bring forthing a technically complex point for the first clip. or when an point has high direct-labor content.

3. Why can we utilize unsmooth estimations when using larning curves?

3. A: Assuming a decrease in clip will follow a predictable form. and because it is predictable. we can develop estimations.

4. Why do manual procedures experience greater larning curves than automated procedures?

4. A: The worker has the ability to larn and better through insistent attempt and increased efficiency.

5. Are there factors besides larning that can assist cut down costs as volume additions?

5. A: Alterations to the production procedure ; such as presenting new production methods. replacing increased mechanization for labour. or updating procedure engineering.