New high-efficiency turbine-generator

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Reference no: EM1391478

Western Turbine, Inc., has just completed the production of the 10th unit of a new high-efficiency turbine/generator. Its analysis showed that a learning rate of 85 percent existed over the production of the 10 units. If the 10th unit contained labor costs of $2.5 million, what price should Western Turbine charge for labor on units 11 and 12 to make a profit of 10 percent of the selling price?

Reference no: EM1391478

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