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The ArtHaus by Antonia continually introduces new pattern of ceramic plates periodically. She can produce a batch of 1,000 potentially useable units...
The ArtHaus by Antonia continually introduces new pattern of ceramic plates periodically. She can produce a batch of 1,000 potentially useable units per week. However, between the shaping, firing, painting, and glazing, many are discovered to be flawed through the process and must be discarded. However, Antonia can determine where the more common flaws develop and adjust the production process to eliminate these. Her yield rate for the initial batch is usually 60%, but increase by 2% with each additional batch up to 100%. What best describes her cost schedule? How many batches does it take her to reach 10,000 units? 20,000 units?
