What is your break-even price for those two units.

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Q. Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. First unit costs you $64 to produce.

a) If you receive a request for proposal (RFP) on a project for four units, what is your break-even price?

b) Suppose that if you get contract, you estimate that you can win another project for two more units. Now what is your break-even price for those two units?

Reference no: EM1369613

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