1. Instead of an 80% learning curve, the supplier believes that a 90% learning curve will be more indicative of what will occur in the future (starting at unit 51). What would be the unit cost of labor for the next 350 units using a 90% learning curve?

2. What would be the total priceABC should pay for the 350 units for an 80% learning curve for labor, and for a 90% learning curve for labor? What % difference is this between the two assumptions of learning curves?

3. What suggestions should ABC make to the supplier in order for the supplier to incur cost reductions at the 80% learning curve level?