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Quantitative analysis






                   A new product will take 100 hours for the first unit. An 80% learning curve
                   applies.


                               Cumulative                               Incremental

                   Units        Average       Total time     Units      Total time     Average
                                time per                                               time per
                                  unit                                                    unit

                       1         100           100             1         100             100

                       2           80          160             2          60              60

                       4           64          256             4          96              48

                       8           51.2        409.6           8         153.6            38.4

                      16           40.96       655.36         16         254.76           30.72
















































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