(Answered) Data for a new product that is very labor intensive

Management Studies

Data for a new product that is very labor intensive introduced by Hicks Brothers in the operation in Hendersonville, TN is given below. The average labor cost including overhead expenses is about $20 per hour.

Time for the very first unit = 9 hours

Time for the second unit = 8.462 hours.

What is the labor cost for the 1000-th unit?

$75.23
$62.30
$69.90
$55.85

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