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Calculate a future cost given a learning rate The initial cost to produce a widget...

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Accounting

Calculate a future cost given a learning rate

The initial cost to produce a widget is estimated to be $150. The learning rate has been calculated to be 92%.

Calculate the cost of the 128th unit using the basic theory proposed by Wright that every time production doubles, the time required (cost) will decrease by the learning rate.

Calculate the cost of the 128th unit using the Wright equation.

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