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17. A customer has asked your company to prepare a bid on supplying 800 units of a new product. Production will be in batches of
17. A customer has asked your company to prepare a bid on supplying 800 units of a new product. Production will be in batches of 100 units. You estimate that costs for the batch of 100 units will average 100 per unit. You also expect that a 90% learning curve will apply to the cumulative labour cost on this contract. Prepare an estimate of the labour costs of fulfilling this contract. Estimate the incremental labour cost of extending the production run to produce an additional 800 units. Estimate the incremental labour cost of extending the production from 800 units to 900 units
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