1A2D A MANUFACTURING FIRM PLANS TO BID ON A SPECIAL ORDER OF 80 UNITS...

20. CSO: 1A2b LOS: 1A2d

A manufacturing firm plans to bid on a special order of 80 units that will be

manufactured in lots of 10 units each. The production manager estimates that the direct

labor hours per unit will decline by a constant percentage each time the cumulative

quantity of units produced doubles. The quantitative technique used to capture this

phenomenon and estimate the direct labor hours required for the special order is

a. cost-profit-volume analysis.

b. the Markov process.

c. linear programming analysis.

d. learning curve analysis.

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