1.Key in the program, (Note: If the average cost are not going to be calcu- lated, lines 25 through 48 need not be keyed in).
2.To calculate r, the learning factor, if C1 and Cn are known:
a.Key in C1, the cost of the first unit and press 
.
b.Key in Cn, the cost of the nth unit and press 
.
c.Key in n, the number of units and press 
to calculate r the learning factor.
3.To calculate the cost of the nth unit when C1 and r are known:
a.Key in C1 and press 
1. Key in r and press 
2. (Note: This step may be skipped if step 2 has just been done).
b.Key in the number of units, n and calculate Cn, the cost of the nth
unit by pressing 
16 
.
4.To calculate the average cost per unit of the ith through jth unit, Cij, if C1 and r are known.
a.Key in C1 and press 
1. Key in r and press 
2. (Note: This step may be skipped if step 2 has just been done).
b.Key in the number of the last unit of the batch, j and press
.
c.Key in the number of the first unit of the batch, i, and calculate the
average cost per unit by pressing 
25 
.
Example 2: The electronic manufacturer cited in example 1 found that the 100th instrument actually cost $395 to manufacture. Find the actual learning factor, r, the cost of the 500th unit and the average cost of units 500 thru 1000. (Recall that C1 was $875).
Keystrokes Display
875 |
| 875.00 |
| |
|
|
| ||
395 |
| 395.00 |
| |
|
|
| ||
100 |
| 0.89 | Actual r. | |
|
|
| ||
500 | 16 | 299.14 | Cost of the 500th unit. | |
|
| |||
1000 |
| 1000.00 |
| |
|
|
| ||
500 | 25 | 280.00 | Average cost of the 500th thru 1000th | |
unit. | ||||
|
