An 80 learning curve has been observed for the production of

An 80% learning curve has been observed for the production of the MEERKAT system. If the 5th production unit\'s recurring cost is $1 million, what will be the recurring cost for the 10th production unit? Assume that the production line is continuous and that the learning curve does not change.

A $900,000

B $500,000

C. $640,000

D. $800,000

Solution

Option: D ($ 800000)