Under the incremental unit-time learning model, this is the incremental labor cost as a percentage of the first unit produced that is required for the 8th unit. See the correct answer for a complete explanation.
Under the incremental unit-time learning model, this is the incremental labor cost as a percentage of the first unit produced that is required for the 32nd unit, not the 16th unit. See the correct answer for a complete explanation.
In a learning curve situation in which the labor costs are reduced by 20% each time that production is doubled, this means that if the first unit requires 100% of the labor cost, under the incremental unit-time learning model, the second unit will require only 80% of the labor cost of the first unit. The 4th unit will require only 80% of the labor cost of the 2nd unit, or 80% of 80%, which is 64%. The 8th unit will require 80% of the labor cost of the 4th unit, or 80% of 64%, which is 51%. The 16th unit will require 80% of the labor cost of the 8th unit, or 80% of 51%, which is 41% of the first unit's direct labor cost.
Under the incremental unit-time learning model, this is the incremental labor cost as a percentage of the first unit produced that is required for the 4th unit. See the correct answer for a complete explanation.
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