1. Calculate Projected Costs with the Cumulative Average Learning Curve
Principles of Cost Analysis and Management
Show Slide #1: Calculate Projected Costs with the Cumulative Average Learning Curve
Title: Calculate Projected Costs with the Cumulative Average Learning Curve
References: FM 1-06 Financial Management Operations, Lesson Created Handout, Notes and Template.
Section I. Administrative Data:
Academic Hours/Methods
01 hrs. / 10 min. DSL (large or small group discussion)
00 hrs. / 40 min. PE (practical exercise (Hands On)
00 hrs. / 00 min. Test
00 hrs. / 00 min. Test Review
00 hrs. / 00 min. Total Hours
Section II. Introduction:
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 05 min.
Media: PowerPoint Presentation
Facilitator's Material: Each primary Facilitator's should possess a lesson plan, slide deck, course handouts, practical exercise with answer key, excel template, and summary sheet containing FM 1-06.
Learner’s Material: Learners should possess course handouts, practical exercises, summary sheet containing FM 1-06, excel template with access to Bb and standard classroom supplies.
Note: "All required references and technical manuals will be provided by the School House“
Facilitator's Note: Transition into Motivator (Concrete Experience) next slide.

2. Forrrrrrrre!!! Should I take lessons?
Show Slide #2: Concrete Experience (Forrrrrrrrre!!!)
Motivator (Concrete Experience): Discuss with learners about the following Scenario. Explain the “Learning Curve”? How does it relate to your business model as per the planning, assuming, and executing of plans and/or products.
Facilitator's Note: This is a good chance to find out what learners understand about “Learning Curves””. Let them give their suggestions and write them up on the board. Depending upon the learners’ level of sophistication and knowledge, you will get answers from that range from:
Crunch numbers,
Prepare reports
Keep records
Etc.
Note: Throughout the lesson discussion seek opportunities to link the competencies with the lesson content through the learner’s experiences.

3. Terminal Learning Objective
Action: Calculate Projected Costs with the Cumulative Average Learning Curve
Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy (70% for international Learners):
Describe the Concept of the Cumulative Average Learning Curve.
Show Slide #3: Terminal Learning Objective
Facilitator’s Note: Read TLO
Action: Calculate Projected Costs with the Cumulative Average Learning Curve
Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy (70% for international Learners):
Describe the Concept of the Cumulative Average Learning Curve.
Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Risk Assessment Level: Low.
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Evaluation: Learners will take the Principles of Cost Analysis and Management 3 Exam at the end of Week Three. Students must score 80% or higher and International officers must score 70% or higher.
Instructional Lead in: Time is perfect to continue to find out what learners further understand about the cumulative average of the Learning Curve, along with the theory. Go over their suggestions written on the board. Let them discuss and give their interpretations, but this time basing it on real world scenarios.

4. What is the Learning Curve?
Learning is an important part of continuous improvement
Learning curve theory can predict future improvement as experience grows
Learning occurs most rapidly with the first few trials and then slows
Cumulative learning curve percentage conveys the factors by which the cumulative average adjusts with every doubling of experience
Show Slide #4: What is the Learning Curve?
Learning Step Activity 1: Describe the Concept of the Learning Curve.
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 2:25
Time of Instruction: 01 hrs. / 00 min.
Media: Power Point, Printed Reference Material
Facilitator's Note: Transition into lesson by facilitating a discussion on each bullet by following each of them with, why, how, when, etc type questions.
Learning is an important part of continuous improvement
Learning curve theory can predict future improvement as experience grows
Learning occurs most rapidly with the first few trials and then slows
Cumulative learning curve percentage conveys the factors by which the cumulative average adjusts with every doubling of experience

5. In-Class Activity Appoint one learner as class timekeeper
Divide class into teams
Instructor issues materials
Instructor specifies task
All teams start immediately and at the same time
Timekeeper records time each team finishes task
Instructor converts time into resource consumption (person seconds)
Show Slide #5: In-Class Activity
Facilitator's Note: Set up the classroom as per the instructions listed.
This exercise will give the learners a good example of the Learning Curve.
Appoint one learner as class timekeeper
Divide class into teams
Instructor issues materials
Instructor specifies task
All teams start immediately and at the same time
Timekeeper records time each team finishes task
Instructor converts time into resource consumption (person seconds)
Teams: A, B, C, and D
People:
Seconds:
Per-Secs:
Team A B C D E F
People
Seconds
Per-secs
© Dale R. Geiger 2011

6. Class Discussion Q1. How did we do? Q2. How can we do it better?
Q2a. Was there role confusion?
Q2b. Were we over staffed?
Q3. How much better can we do it?
Show Slide #6: Class Discussion
Facilitator's Note: After the short activity, be prepared to ask and have the learners discuss and answer the following questions.
1st Mouse Click
Q1. How did we do?
2nd Mouse Click
Q2. How can we do it better?
3rd Mouse Click
Q2a. Was there role confusion?
4th Mouse Click
Q2b. Were we over staffed?
5th Mouse Click
Q5. How much better can we do it?

7. Cumulative Average Learning Curve (CALC) Theory
“The Cumulative Average per Unit
Decreases by a Constant Percentage
Each Time the Number of Iterations Doubles”
“The Cumulative Average per Unit
Decreases by a Constant Percentage
Each Time the Number of Iterations Doubles”
“The Cumulative Average per Unit
Decreases by a Constant Percentage
Each Time the Number of Iterations Doubles”
“The Cumulative Average per Unit Decreases by a Constant Percentage Each Time the Number of Iterations Doubles”
Expect a certain level of improvement with each repetition
Absolute improvement is marginal and will decrease over many repetitions
Assume a consistent percentage of improvement at Doubling Points (2nd, 4th, 8th, 16th, etc.)
Improvement is based on cumulative average cost
Expect a certain level of improvement with each repetition
Absolute improvement is marginal and will decrease over many repetitions
Assume a consistent percentage of improvement at Doubling Points (2nd, 4th, 8th, 16th, etc.)
Improvement is cost
Show Slide #7: Cumulative Average Learning Curve (CALC) Theory
Facilitator's Note: Go over and facilitate the CALC definition with learners.
1st Mouse Click View:
The Cumulative Average per Unit
2nd Mouse Click View
Decreases by a Constant Percentage
3rd Mouse Click View
Each Time the Number of Iterations Doubles
4th Mouse Click View: Explanations
Expect a certain level of improvement with each repetition
Absolute improvement is marginal and will decrease over many repetitions
Assume a consistent percentage of improvement at Doubling Points (2nd, 4th, 8th, 16th, etc.)
Improvement is based on cumulative average cost

8. Cumulative average of 1st event is equal to 1st event
Applying CALC Theory
CALC theory posits that the use of resources will drop predictably as experience doubles
Let’s assume an 80% learning rate
Cumulative average =
Sum of all events
# of events
80% learning rate means:
Event 1 + Event 2 2
= 80% * Event 1
Show Slide #8: Applying CALC Theory
Facilitator's Note: Introduce formula and its concept to learners
CALC theory posits that the use of resources will drop predictably as experience doubles
Let’s assume an 80% learning rate
Cumulative average =
Sum of all events
# of events
80% learning rate means:
Event 1 + Event 2 2
= 80% * Event 1
Note: Cumulative average of 1st event is equal to 1st event
Cumulative average of 1st event is equal to 1st event

9. Applying CALC Theory (Cont.)
Use the 80% learning curve to predict Event 2
(Event 1 + Event 2)/2 = 80% * Event 1
2 * (Event 1 + Event 2) /2 = 2 * 80% * Event 1
Event 1 + Event 2 = 160% * Event 1
Event 2 = (160% * Event 1) – Event 1
Calculate a predicted second trial for each team
Show Slide #9: Applying CALC Theory (Cont.)
Facilitator's Note: Continue Introduction of formula and begin calculations with learners.
Use the 80% learning curve to predict Event 2
(Event 1 + Event 2)/2 = 80% * Event 1
2 * (Event 1 + Event 2) /2 = 2 * 80% * Event 1
Event 1 + Event 2 = 160% * Event 1
Event 2 = (160% * Event 1) – Event 1
Calculate a predicted second trial for each team
Teams A, B, C, D, E, F
1st Cum Avg.
2nd Cum Avg.
Predicted 2nd Event
Team A B C D E F
1st cum avg
2nd cum avg
Predicted 2nd event

10. Let’s See if It Works The best performing four teams continue
Repeat the task
Did learning occur?
What CALC % did each team achieve
Team
1st event per-secs
Predicted 2nd event
Actual 2nd event
Show Slide #10: Let’s see if it works
Facilitator's Note: Discuss the outcomes as a whole group/class to determine if it works.
The best performing four teams continue
Repeat the task
Team
1st event per-secs
Predicted 2nd event
Actual 2nd event
Did learning occur?
What CALC % did each team achieve

11. The CALC Template
Total per-secs after 2nd event is sum of 1st and 2nd events ( = 540)
Cumulative Average after 2nd event is Total divided by number of events in the Total (540/2 = 270)
CALC% is the ratio between cumulative averages of 2nd and 1st events (270/300 = 90%)
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90%
Column 1 is the event number
Column 2 is the result for that event
Column 3 is the cumulative total for all events
Column 4 is the cumulative average for all events
Show Slide #11: The CALC Template
Facilitator's Note: Show and explain the Sequence Breakdown of formula to learners and answer to this point any questions they may have.
Column 1 is the event number
Trial Number / 1 and 2
Column 2 is the result for that event
Event Per-Secs / 300 and 240
Column 3 is the cumulative total for all events
Total Per-Secs / 300 and 540
Column 4 is the cumulative average for all events
Cumulative Average / 300 and 270
Last Column
CALC % / 90%

12. The CALC Template (Cont.)
Total per-secs after 2nd event is sum of 1st and 2nd events ( = 540)
Cumulative Average after 2nd event is Total divided by number of events in the Total (540/2 = 270)
CALC% is the ratio between cumulative averages of 2nd and 1st events (270/300 = 90%)
Cumulative average for Event 1 = cumulative total/1
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90%
/1 =
Show Slide #12: The CALC Template (Cont.)
Facilitator's Note: Sequence Breakdown of formula (Cont.)
Note: Cumulative average for Event 1 = cumulative total/1
Column 1 is the event number
Trial Number 1
Column 2 is the result for that event
Event Per-Secs 300
Column 3 is the cumulative total for all events
Total Per-Secs 300/1=
Column 4 is the cumulative average for all events
Cumulative Average 300
Last Column
CALC % / 90%

13. The CALC Template (Cont.)
Total per-secs after 2nd event is sum of 1st and 2nd events ( = 540)
Cumulative Average after 2nd event is Total divided by number of events in the Total (540/2 = 270)
CALC% is the ratio between cumulative averages of 2nd and 1st events (270/300 = 90%)
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90%
Show Slide #13: The CALC Template (Cont.)
Facilitator's Note: Sequence Breakdown of formula (Cont.)
Total per-secs after 2nd event is sum of 1st and 2nd events ( = 540)
Column 2 is the result for that event
Event Per-Secs 300 / 240
Column 3 is the cumulative total for all events
Total Per-Secs 300 / 540

14. The CALC Template (Cont.)
Total per-secs after 2nd event is sum of 1st and 2nd events ( = 540)
Cumulative Average after 2nd event is Total divided by number of events in the Total (540/2 = 270)
CALC% is the ratio between cumulative averages of 2nd and 1st events (270/300 = 90%)
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90%
/2 =
Show Slide #14: The CALC Template (Cont.)
Facilitator's Note: Sequence Breakdown of formula (Cont.)
Cumulative Average after 2nd event is Total divided by number of events in the Total (540/2 = 270)
Column 3 is the cumulative total for all events
Total Per-Secs 300 / 540/2=

15. The CALC Template
Total per-secs after 2nd event is sum of 1st and 2nd events ( = 540)
Cumulative Average after 2nd event is Total divided by number of events in the Total (540/2 = 270)
CALC% is the ratio between cumulative averages of 2nd and 1st events (270/300 = 90%)
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90%
/2 =
Show Slide #15: The CALC Template (Cont.)
Facilitator's Note: Sequence Breakdown of formula (Cont.)
CALC% is the ratio between cumulative averages of 2nd and 1st events (270/300 = 90%)
Column 3 is the cumulative total for all events
Total Per-Secs 540/2=
Column 4 is the cumulative average for all events
Cumulative Average 270

16. What CALC% Did the Teams Achieve?
Complete the table
Team
1st event cum avg
2nd event cum avg
2nd event CALC%
Show Slide #16: What Did the Teams Achieve?
Facilitator's Note: Sequence Breakdown of formula (Cont.)
Complete the table
Team:
1st event cum avg
2nd event cum avg
2nd event CALC%

17. Can We Get Better? Of course! There is always a better way
However, learning curve theory recognizes that improvement occurs with doubling of experience
Consider the 80% CALC
Trial
Cum Avg 1
100 2 80 4 64 8
51.2 16
40.96 32
32.768
Show Slide #17: Can We Get Better?
Facilitator's Note: Things to consider.
Of course! There is always a better way
However, learning curve theory recognizes that improvement occurs with doubling of experience
Consider the 80% CALC

18. Can We Predict the 3rd Event
Yes – but this gets more complicated
Because the 3rd event is not a doubling of experience from the 2nd event
There is an equation: y = aX
b= ln calc%/ln 2
a = 1st event per-secs
X = event number
y works out to for the cum avg after 3rd event
(We are only interested in natural doubling in this course) b
Show Slide #18: Can We Predict the 3rd Event?
Facilitator's Note: Additional Equation
Yes – but this gets more complicated
Because the 3rd event is not a doubling of experience from the 2nd event
There is an equation: y = aX
b= ln calc%/ln 2
a = 1st event per-secs
X = event number
y works out to for the cum avg after 3rd event
(We are only interested in natural doubling in this course)

19. However…
We can easily calculate the per-secs for the 3rd and 4th events combined
We can easily calculate the per-secs for the 3rd and 4th event combined
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90% 4
972
243
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90% 4
972
= 243
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1
300 2
240
540
270
90% 4
972
243
assumed same as 2nd
Show Slide #19: However…
Facilitator's Note: Calculation Breakdown
We can easily calculate the per-secs for the 3rd and 4th events combined
Note: assumed same as 2nd
1st Mouse Click
= 243 (90% * 2nd event cum avg)
2nd Mouse Click
4 * cum avg for 4
3rd Mouse Click
Prediction for total of events 3 & 4 is difference between cumulative total for 3 and cumulative total for 4: = 432
4 * cum avg for 4
90% * 2nd event cum avg
Prediction for total of events 3 & 4 is difference between cumulative total for 3 and cumulative total for 4:
= 432

20. Finishing Up
The team with the best 2nd event time and the team with the best CALC% will complete the task two additional times
Each learner should calculate a prediction for the best total time for 3rd and 4th event
The team with the best 3rd and 4th event time and the three learners with the closest prediction WIN
Show Slide #20: Finishing Up.
Facilitator's Note: Guidelines for success.
The team with the best 2nd event time and the team with the best CALC% will complete the task two additional times
Each learner should calculate a prediction for the best total time for 3rd and 4th event
The team with the best 3rd and 4th event time and the three learners with the closest prediction WIN

21. Score Sheet Trial Number Event Per-Secs Total Per-Secs
Cumulative Average
CALC % 1 2
3+4 pred
3+4 act
Team:
Trial Number
Event Per-Secs
Total Per-Secs
Cumulative Average
CALC % 1 2
3+4 pred
3+4 act
Show Slide #21: Score Sheet
Facilitator's Note: Compare scores between teams.
1st Team: Trial Number / Event Per-Secs / Total Per-Secs / Cumulative Average / CALC% 1 2
3 & 4 Pred
3 & 4 act
2nd Team: Trial Number / Event Per-Secs / Total Per-Secs / Cumulative Average / CALC%
Team:

22. Applications for Learning Curve
Learning effects all costs and can be a major factor in evaluating contract bids
How many per-secs did the winning team save after four events compared to their 1st event time without learning?
Learning curve effects are very dramatic over the first few events
Consider the effect on new weapons systems developments
What are the advantages of a contractor who has already “come down the learning curve”?
Show Slide #22: Applications for Learning Curve
Facilitator's Note: Calculation Breakdown
Learning effects all costs and can be a major factor in evaluating contract bids
How many per-secs did the winning team save after four events compared to their 1st event time without learning?
Learning curve effects are very dramatic over the first few events
Consider the effect on new weapons systems developments
What are the advantages of a contractor who has already “come down the learning curve”?

23. LSA #1 Check on Learning
Q1. A 90% CALC means that the time for the second event will be what percentage of the time for the first event?
Use the 90% learning curve to predict Event 2
(Event 1 + Event 2)/2 = 90% * Event 1
2 * (Event 1 + Event 2) /2 = 2 * 90% * Event 1
Event 1 + Event 2 = 180% * Event 1
Event 2 = (180% * Event 1) – Event 1
Event 2 = 180% * Event 1 – 100% * Event 1
Event 2 = 80%
Show Slide #23: LSA #1 Check on Learning
Facilitator's Note: Ask check on learning question, facilitate discussion on answers given.
Q1. A 90% CALC means that the time for the second event will be what percentage of the time for the first event?
Reminder: Use the 90% learning curve to predict Event 2
A1.
(Event 1 + Event 2)/2 = 90% * Event 1
2 * (Event 1 + Event 2) /2 = 2 * 90% * Event 1
Event 1 + Event 2 = 180% * Event 1
Event 2 = (180% * Event 1) – Event 1
Event 2 = 180% * Event 1 – 100% * Event 1
Event 2 = 80%

24. LSA #1 Summary
Throughout this lesson, we covered the very definition of Learning Curve and explored the CALC Theory as well. This was all applied to an in-class activity pitting one team against the other.
Show Slide #24: LSA #1 Summary
Facilitator's Note: Throughout this lesson, we covered the very definition of Learning Curve and explored the CALC Theory as well. This was all applied to an in-class activity pitting one team against the other.

25. Practical Exercises / Review
Show Slide #25: Practical Exercise / Review
Practical Exercise / Review: Practical Exercise Calculate Projected Costs with Cumulative Average Learning Curve (CALC)
Method of Instruction: Practical Exercise
Facilitator's to Learner Ratio: 2:25
Time of Instruction: 00 hrs. / 40 min.
Media: Handouts
Facilitator’s Note: This is a run self-study exercise. You will use the handouts to complete your practical exercises in this segment. You will enter data to complete PE Calculate Projected Costs with Cum Avg Learning Curve.
Special Instructions: Ensure Learners have access to PE Calculate Projected Costs with Cum Avg Learning Curve and all related material to complete the self-study practical exercise.
Objectives: With at least 80% accuracy (70% for international Learners): Learners as individuals will answer the questions in the PE Calculate Projected Costs with Cum Avg Learning Curve, using the Excel 11.3 Calculate Projected Costs worksheet for discussion and its answers.
Facilitator’s Material: Each primary Facilitator's should possess a lesson plan, slide deck, course handouts, practical exercise with answer key, summary worksheet containing FM 1-06 (Financial Management Operations), excel template and lesson created notes.
Learner’s Material: Learners should possess course handouts, self-study practical exercise titled PE Calculate Projected Costs with Cum Avg Learning Curve, summary worksheet containing FM 1-06 (Financial Management Operations), Handout titled HO Calculate Projected Costs, Excel 11.3 Calculate Projected Costs with access to Bb, and standard classroom supplies. 
Materials Needed:
11.3 Calculate Projected Costs Excel worksheet
Practical Exercise titled: PE Calculate Projected Costs with Cum Avg Learning Curve
Handout Calculate Projected Costs
*Pen Or Pencil
*Blank Paper
Note: (* Learner responsibility)
Procedures/Instructions:
All situations have one correct answer.
You will complete this PE immediately following the class on Calculate Projected Costs with the Cumulative Average Learning Curve.
You will have 20 minutes for completion of this practical exercise, and 20 minutes for a review.
Be prepared to go over the entries and individual solutions for each question.
General Information: Learners will need to solve three solutions in calculating projected cost, utilizing the cumulative average learning curve for refurbishing barracks labor and material. Learners will use the excel worksheet for inputting and receiving data necessary to find the right solutions. Use the handout and all notes in finding and gathering information to assist with the learning objective. Encourage learners to do this as individuals, and that they will have time to complete this practical exercise, followed by a review at the completion.
Instructional Lead-in: Given the different situations and scenarios within the PE, you will need to calculate and get answers to each question given.
PE 101.1, answer to how much will it cost to do the next seven barracks?
PE 102.2, answer to how much would a 3% annual productivity improvement save over ten years? How much less would the 10th year be in comparison to the $60 billion?
PE 103.3, answer to how many houses must be made to reach their goal?
Feedback: AAR will be conducted after the PE, along with a Learner end of course critique will be conducted at the end of the course.
Facilitator’s Note: If you experience difficulties, ask the Facilitator‘s or assistant Facilitator's for immediate assistance or help.
Requirements:
Learners conduct their own work.
Enter relevant report data to answer questions in the PE by utilizing the excel worksheet.
Practical Exercise Calculate Projected Costs with Cum Avg Learning Curve
Excel 11.3 Calculate Projected Costs worksheet
HO Calculate Projected Costs
Practical Exercise AJHPC101.1
Practical Exercise AJHPC101.2
Practical Exercise AJHPC101.3
Evaluation: To obtain a "Go" in this PE, you must:
1. Correctly as a individual answer and fill out the answers in the PE utilizing the excel worksheet.
2. Calculate and compute the answers to the situation. 3. Be prepare to present the your answers during the review
Facilitator’s Note: This begins the self-study practical exercise. Learners are on their own at this point.
Commence Practical Exercise:
Practical Exercise Solution/Answer Key: Calculate Projected Costs with Cumulative Average Learning Curve
11.3 Solution AJHPC101.1
Barracks:
Trial Number Trial Cost Total Cost Cumulative Average Cost CALC % % % %
Total cost for 8 = – 100 for the 1st = for #2-7
Material: % %
, %
Total cost for 8 = 1,028.85– 150 for the 1st = for #2-8
Total cost for units #2-8 = = 1,188.45
11.3 Solution AJHPC101.2
Year Cost % Savings from $60B  
Total savings
The cost decreases by 3% each year. But the power of this is shown in the right hand column. That represents the savings from the original $60 billion. Over the 10 years a total of $74.85 billion is saved. In year 10 the cost is $14.39 billion less than in year 1.
11.3 Solution AJHPC101.3
The woodshop club wants to raise money for new equipment and hopes to sell doll houses at $100 with $20 profit per house. However, the first doll house cost $ Assuming an 80% cumulative average learning curve how many houses must be made to reach their goal?
From the spreadsheet we can see that by the 32nd doll house the cumulative average cost per dollhouse is $80, which yields a $20 profit per doll house when the doll houses are sold for $100 each.

26. TLO Summary
Action: Calculate Projected Costs with the Cumulative Average Learning Curve
Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy (70% for international Learners):
Describe the Concept of the Cumulative Average Learning Curve.
Show Slide #26: TLO Summary
Facilitator’s Note: Read TLO
Action: Calculate Projected Costs with the Cumulative Average Learning Curve
Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy (70% for international Learners):
Describe the Concept of the Cumulative Average Learning Curve.
“Or”
Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.