Using curve pricing approach to approximate cost


Assignment:

A producer of microwave ovens has adopted an experience curve pricing approach for its new model. The firm believes it can reduce the cost of producing the model by 20 percent each time volume doubles. The cost to produce the first unit was $1,000. What would be the approximate cost of the 4,096th unit?

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Cost Accounting: Using curve pricing approach to approximate cost
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