A product that is very labor intensive has an average labor cost of $45/hr. The time for the very 1st unit = 10 hours, and steady state is reached at the 4th unit. Your firm's bid for this contract is to produce 8 total units.

(a) If the learning curve percentage is 90%, what is the cumulative time for 8 units to be made?

(b) If you include a 50% profit margin over your costs, what is the labor portion of the bid?