Question

In: Accounting

You are purchasing a special equipment for military use. The supplier reveals its cost structure as...

  1. You are purchasing a special equipment for military use. The supplier reveals its cost structure as follows:

Material cost = $40 per unit

Labor hours = 10 per unit for the first unit, Labor cost = $10/hour

List the material and labor cost and labor + material cost for the first 8 units when the supplier utilizes a learning curve of 85%.

PLEASE PROVIDE THE FORMULA SO I ACTUALLY KNOW HOW TO DO THIS STUFF.

Unit

Material Cost

Labor Cost

Total Cost

1

$40

2

$80

3

120

4

$160

5

$200

6

$240

7

$280

8

$320

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Expert Solution

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ekkarill92 answered 2 years ago
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