A firm produces a new item that is manually assembled. Assembly cost is estimated as being $(A) per hour. They have an order for (B) of these new items and find that the first item takes (C) hours to assemble. From experience they know that their workers have an estimated improvement curve of (D)%.

Insert the following values into the statement above:

A, a hypothetical* estimated assembly cost per hour,

B, a hypothetical order number for assembled items (use a value between 30 and 50),

C, a hypothetical number of hours for assembly of the first item and

D, a hypothetical estimated improvement curve percentage**

* That is, just make up your own value. Do not use values if they were used in a textbook in a similar example.

** See the Learning Curve tables on the last two pages of this exam.

Now, based on your hypothetical values provided for A, B, C and D in the statement above:

a. How long will it take the 25th item to be assembled? [5 marks]

b. What is the cost of producing all B units? [5 marks]