ABC Motors Ltd has designed a radically new concept in racing bikes with the intention of selling them to professional racing teams. The estimated cost and selling price of the first bike to be manufactured and assembled is as follows: Materials 1,000 Assembly Labour (50 hours at $10 per hour) 500 Fixed Overheads (200% of Assembly labour) 1,000 Profit (20% of total cost) 500 - - - - Selling Price $3,000 ABC Motors Ltd plans to sell all bikes at total cost plus 20% and the material cost per bike will remain constant irrespective of the number sold. ABC Motors Ltd management expects the assembly time to gradually improve with experience and has estimated an 80% learning curve. A racing team has approached the company and asked for the following quotations: 1. If we were to purchase the first bike assembled, and immediately put in an order for the second, what would be the price of the second bike? 2. If we waited until you had sold two bikes to another team, and then ordered the third and fourth bikes to be assembled, what would be the average price of the third and fourth bikes? 3. If we decided to immediately equip our entire team with the new bike, what would be the price per bike if we placed an order for the first eight to be assembled