Refer to the table below. Assume that the company involved now finds that the learning rate...

Question

Question

Refer to the table below. Assume that the company involved now finds that the learning rate...

Refer to the table below. Assume that the company involved now finds that the learning rate is 91 percent. The 91 percent learning rate coefficient is −0.136062; that is b = −0.136062 in the formula Y = aX^b.

Required:

Using the formula, Y = aX^b, compute the labor time and costs for 5, 6, and 7 units. (Round your intermediate calculations (except for coefficient) and final answers to 2 decimal places.)

Unit Produced (X)	Labor Time Required to Produce the Xth Unit (i.e., the last single unit produced)1 (Y)	Cumulative Total Time in Labor- Hours(2)	Total Cost(3)	Average Cost per Unit(4)
1	100.00	100.00	$5,000.00	$5,000.00
2	91.00	191.00	9,550.00	4,775.00
3	86.12	277.12	13,855.78	4,618.59
4	82.81	359.93	17,996.28	4,499.07
5
6
7
8	75.36	670.72	33,536.02	4,192.00

business accounting

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Answer 1

Answer #1

Unit Produced (X)	Labor Time Required to Produce the Xth Unit (i.e., the last single unit produced)1 (Y)	Cumulative Total Time in Labor- Hours(2)	Total Cost(3)	Average Cost per Unit(4)
1	100.00	100.00	$5,000.00	$5,000.00
2	91.00	191.00	$9,550.00	$4,775.00
3	86.12	277.12	$13,855.78	$4,618.59
4	82.81	359.93	$17,996.28	$4,499.07
5	80.33	440.26	$22,012.73	$4,402.55
6	78.37	518.63	$25,931.18	$4,321.86
7	76.74	595.37	$29,768.14	$387.91
8	75.36	670.72	$33,536.02	$4,192.00

Detail Working for Easy refrence

Computation of Required detail

At Unit Produced = 5

Labour time required= 100X(5^-0.136062)=80.33

Cummulative Total Time in Labour Hour= 359.93+80.33=440.26

Total Cost= (17996.28/359.93)*440.26= 2201273.09

Average Cost per Unit= 22012.73/5=4402.55

At Unit Produced = 6

Labour time required= 100X(6^-0.136062)=78.37

Cummulative Total Time in Labour Hour= 440.26+78.37=518.63

Total Cost= (22012.73/440.26)*518.63=25931.18

Average Cost per Unit= 25931.18/6=4321.86

At Unit Produced = 7

Labour time required= 100X(7^-0.136062)=76.74

Cummulative Total Time in Labour Hour= 518.63+76.74=595.37

Total Cost= (25931.18/518.63)*595.37=29768.13

Average Cost per Unit= 29768.13/7=4252.59

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Answer 2

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