in ca final cost management, in padukas saravana prasath book,page 19.4,sum no3,i have doubt.....
question:a plane costs 1500 lacs to manufacture and exhibits an 85%learning curve .calculate the cost of each of the first five planes.
cost of first 5 planes:
answer : 1. 1500 lacs*1.000 = 1500lacs
2 1500lacs*0.8500 = 1275lacs
3 1500lacs*0.7730 = 1159.5lacs
4 1500lacs*0.7230 = 1084.5lacs
5 1500lacs*0.6860 = 1029lacs
my doubt is how did the numbers 1.000,.8500,.7730,.7230,.6860 come........how to get those numbers????if anyon eknows the answer..please explain in detail....
CAclubindia
