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Find the unit cost of production for next year

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Reference no: EM13512625

Carson, Inc., uses a learning curve of 80 percent for all new products it develops. A trial run of 500 units of a new product shows total labor-related costs (direct, indirect labor, and fringe benefits) of $120,000. Management plans to produce 1,500 units of the new product during thenext year.

1. Compute the expected labor-related costs for the year to produce the 1,500 units.

2. Find the unit cost of production for next year for labor-related costs.

Reference no: EM13512625

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