Answer:
$2,731,672.50
Explanation:
first unit produced by lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies
the second unit took 4,250 hours and used $238,500 worth of materials, equipment usage, and supplies
learning rate = time needed to produce second unit / time needed to produce first unit = 4,250 hours / 5,000 hours = 85%
materials and equipment usage rate = $237,500 / $250,000 = 95%
using the attached table of cumulative values, we can determine the cumulative improvement factors needed to solve this question:
Lambda's accumulated cost for producing 10 more computers
-
work hours = 4,250 x 7.116 (85% and 10 units) x $20 per hour = $604,860
- materials and equipment = $238,500 x 8.955 (95% and 10 units) = $2,126,812.50
- total = $604,860 + $2,126,812.50 = $2,731,672.50
