(b) Innovators Ltd. has designed a new model of'a manufacturing machine. The cost and sales price of thu first machine to be produced has been estimated as follows: "Sh.000" Materials Labour (2.000 hours x Sh.15,000 per hour) Overhead (50% of labour cost) 25,000 30,000 15.000 70,000 17,500 87.500 Profit mark-up (25%) Selling price The company plans to sell all the machines at full cost plus 25%. A 90% learning curve is expected to apply to the production work. Only one customer has expressed interest in buying the machine so far, but he views Sh.87,500,000 as too high a price to pay. He could buy more of the machines in the coming periods. Required: If the customer above paid Sh.87,500,000 for the first machine, determine the price he would have to pay later for a second machine. (4 marks) Advise the management of Innovators Ltd. on the price quotation per machine if the customer above places an order for the third and the fourth machines as a single order. (4 marks) (Total: 20 marks)