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Learning rate: assembling keyboards
Company A assembles keyboards for the education sector. They have to assemble 10 units. Previous experience and data they determined that their learning rate is 90%. The first keyboard takes 5 hours to assemble. Labor cost for the worker is $250 per hour and overhead cost is $500. They are planning to have a nominal profit margin of 10%.
Questions:
1. What is the total price for all 10 units?
2. What is the per unit price?
3. At what unit will the company break even?
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