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If there were no learning curve the total direct hours would be approximately 4,000 hours, instead of 1,960 hours, a change of more than 200%.
Fixed overhead costs per lot (a lot equals 50 units) would decrease since the cost is applied at a rate based on direct labor hours, which is decreasing.
If there were an 80% learning curve instead of 70%, the reduction in labor hours would be more than 25% (based on the difference of 1,960 hours at an 80% learning curve and 1,560 hours at a 70% learning curve).
Since there are two doublings, the number of hours required for 200 units using a 70% learning curve is: 1,000 hours × (.7 × 2) × (.7 × 2) = 1,960 hours. 1,960 hours required for 200 units less 1,000 hours required for the first 50 units = 960 hours required for the last 150 units. 960 hours ÷ 150 units = 6.4 hours required per unit for the last 150 units.