A. Nello Corporation is a leading Manufacturer of communication Towers (such as self- supporting towers, guyed tower, and monopoles) had a contract to build 10 towers to support communication in a region. Suppose Nello Corps estimated that, the R&D cost as $2,000,000. Expected material related costs for all 10 towers is $10,000,000 (that is, 1 million each tower). They have estimated the design and production of the first tower. The estimated time to complete the first tower is 80,000 labor hours (400 days, 25 labor and 8 hours per day, i.e., 400x25x8=80,000). An 80% improvement (learning) curve is expected. Skilled labor cost is $100 per hour. Importantly, the project leader will add profit margin, 30% of the total cost in the estimate. What is the total cost with profit? i. How many labor hours should the tenth tower require? (1 pt.) ( --- ) labor hours x ( --- )-( - ) labor hours for the 10th unit Hints: use Table A5.1 (textbook) Learning Curves Unit Values ii. How many labor hours for the whole project of (all) ten tower? (1 pt.) (---) labor hours x ( --- )-(Xi) total for 10 units Hints: use Table A5.2 (textbook) Learning Curves Unit Values iii. What total price would Nello Corps ask for the project (with 75% learning curve)? (1 pts.) Labor (X1 hrs x $100) R&D Material Total Total Project Cost (including 30% profit) = = $X X2 x 1.30 profit B. Near the end, Nello Corps received a request for an extension project of two additional towers. The customer negotiated Nello for a 75% learning curve (instead of 80% before) (since Nello has already built 10 towers). The project leader wants to maintain 30% profit margin. What price will Nello Corps should quote for the new project? Justify the price. (2 pts.) Material cost for 2 towers, 1 million x 2 Labor cost for 11th tower with 75%, i.e., 80,000 hrs x (0.3705) - Labor cost for 12th tower with 75%, i.e., 80,000 hrs x( ) Find total cost Find profit (30%) Get the total estimate for the extension project