Estimate the average cost per unit for the second lot

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Estimating average costs per unit for a production lot

A facility has produced 56 units. From the initial run it is estimated that the cost of the first product was $100 with a learning rate of 93%. It now intends to run a larger lot of 250 units. Estimate the average cost per unit for the second lot. What will the total cost be for the production of the 250 unit lot?

Reference no: EM131293609

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