Milliways Medical has started producing a new medical device. Based on the experience curve pricing concept,* Milliways believes they can reduce the cost of production by 15 percent each time the production volume doubles. The cost of producing the first unit was $900. What would be the approximate cost of the 1024th unit? What about the 1500th unit? I have to use Excel formulas to solve the problem. There are many ways that I can set up the worksheet and calculations to arrive at the answers. For this problem, I can use whatever worksheet format and formulas I want.
