Learning Curves and Production Costs. A company's new process will be carried out in one department. The production process has an expected learn- ing curve of 80 percent. The costs subject to the learning effect for the first batch produced by the process were $10,000.
Required: Using the simplest form of learning function, the cumulative average cost per batch subject to the learning effect after the 16th batch has been produced.
(AI CPA adapted)