BL is planning to manufacture a new product, product A. Development tests suggest that 60% of the?variable manufacturing cost of product A will be affected by a learning and experience curve. This learning?effect will apply to each unit produced and continue at a constant rate of learning until cumulative?production reaches 4,000 units, when learning will stop. The unit variable manufacturing cost of the first?unit is estimated to be $1,200 (of which 60% will be subject to the effect of learning), while the average?unit variable manufacturing cost of four units will be $405.?
Required?
Calculate the rate of learning that is expected to apply.?