Contract must be produced before profits is realized

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A company has decided to bid on follow-on contract for 500 units of a product. The company has already produced 2,000 units on a percent learning curve. The 2000th unit requires 80 hours of production time. If fully burdened is $80 and the company wishes to generate a12 percent profit, how many units of the follow-on contract must be produced before a profits is realized ?

Reference no: EM131643687

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