Problem: What does an ongoing 85% learning curve represent?
a) As production doubles, the direct labor required to produce a unit should decrease 15% on average.
b) As production doubles, the direct labor required to produce a unit should decrease 85% percent on average.
c) As production doubles, the total factory cost required to produce a unit should decrease 15% on average.
d) As purchase quantities increase, the purchase price should decrease 15%.
e) As purchase quantities increase, the purchase price should decrease 85%.