Learning curve theory
This query is : Resolved
04 August 2011
question: hal expects the plane to cost 1500 lacs with 85% learning curve.calculate the average cost per plane to produce the first 25 planes. solution: AVERAGE COST OF FIRST 25 PLANES : Cumulative time factor for 25 planes =14.801 hence total cost of 25 planes =RS 1500 lakhs * 14.801=rs 22,201.50 lakhs. therefore average cost to produce the first 25 planes =222051.50divided by 25=Rs888.06lakhs.
04 August 2011
how does the answer come to 888.06lakhs???
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