Question

A company's production process has an 85 percent learning curve rate. The process has produced 1,000 units to date. A process refinement is estimated to allow a future learning curve rate for the identical product of 75 percent. However, the initial unit made using the new process will take the same amount of time as the initial unit produced using the old process. At what point, using the new process, will the production rate exceed the production rate achieved by the old process?
A. By the 50th unit
B. By the 80th unit
C. By the 100th unit
D. By the 120th unit
E. By the 250th unit

Answer

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