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Carver Pump Company is making specialty pumps for an outdoor fountain. The company has built 5 prototype pumps and recorded the direct labor ( in

Carver Pump Company is making specialty pumps for an outdoor fountain. The company has built 5 prototype pumps and recorded the direct labor (in minutes) for each pump as follows:
1: 500
2: 475
3: 461
4: 451.3
5: 443.9
The company prices their pumps at $300 per direct labor hour. They have found that this pricing scheme covers labor, material and overhead costs and provides for a suitable profit. Using learning curve theory, how much should the company charge for 40 pumps, assuming that they can use the 5 prototype pumps in completing the order.
Question 2 options:
$98,051
$4,902,568
$81,709
$1,903
$114,166

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