Cumulative Total Time

Abboud Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are $30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are $10,000 in fixed costs not subject to learning.

Refer to Figure 3-4. What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?
a – 100 hours
b – 80 hours
c – 160 hours
d – 20 hours