ABC Company is producing and selling Product X. Company management anticipates that a 70% learning curve will apply to the production of a new item. The cost of first item is $1,500 in materials. First item will take 500 labor hours. The cost per labor hour is $4 per hour. Variable overheads are 130% of labor costs. ABC Company has a profit mark-up for its products in amount of 20%. What is the cost of the second unit of Product X? $4,230 $4,250 $3.340 $3,560