contestada

after analyzing the profit projections for next year, lisa reminded the group that production costs would continue to decline on those products that had been in production for five years. what concept was lisa referring to?

Respuesta :

After going over the anticipated profits for the following year, Lisa remarked that for products that had been in production for five years, production costs would continue to drop. Lisa had in mind the experience curve concept.

What does the term "experience curve" mean?

According to the Boston Consulting Group's idea known as the "Experience Curve," there is a reliable correlation between a company's total amount of output over time and its production costs.

Why does the experience curve occur?

The experience curve's fundamental tenet is that the unit manufacturing cost of a standardized item consistently falls as the total quantity of production of that item rises.

An experience curve: how do you make one?

Here's how to figure out your pricing using the experience curve: multiplied by the number of units times the variable cost per unit plus fixed overhead, divided by number of units, plus the set markup %. You can reduce the markup percentage for even more competitive price.

Learn more about experience curve: https://brainly.com/question/28170003

#SPJ4