SUB has produced the first unit of a new line of minisubs at a cost of $500,000-$200,000

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SUB has produced the first unit of a new line of minisubs at a cost of $500,000-$200,000 for materials and $300,000 for labor. It has agreed to accept a 10 percent profit, based on cost, and it is willing to con- tract on the basis of a 70 percent leaming curve. What will be the contract price for three minisubs?

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