Answer:
Average time per unit is 59.6 hours
Explanation:
As we know as the work is done the learning of the labor force increases and they require less time to produce the next unit. An average time required to produce specific numbers of unit including cumulative effect of the learning curve.
As per given data
Number of units = 30 unit
Ratio of Time to produce second unit = 90 / 100 = 0.9
Accumulated Average time per unit Formula is
y = aX^b
Where
y = Average time per unit = ?
X = Cumulative Numbers of unit = 30
a = Time required to produce first unit = 100 hours
b = factor used to calculate cumulative average time = log (Learning Curve %/ log2) = Log (90/100) / Log2 = -0.152
Place value value in the formula
y = 100 x 30^ -0.152 = 59.6 hours
Answer: 8%
Explanation:
The Annual Percentage Rate or APR for short is calculated by dividing the finance cost by the total amount borrowed in the following manner,
APR = Finance Charge / Amount borrowed.
To calculate the Finance charge we add the interest and the service charge.
Finance charge = 25 + 15
= $40
Back to the APR formula we will have,
APR = Finance Charge / Amount borrowed
APR = 40/500
= 0.08
APR is 8%.
