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Classic Chairs ( CC ) plans to begin manufacturing a new line of customized classical furniture by the end of the year. Their target customers

Classic Chairs (CC) plans to begin manufacturing a new line of customized classical furniture by the end of the year. Their target customers are influential families who like to customize their furniture in the form of classic design. CC believes that any new customized furniture will take them 14 hours to manufacture and estimates the learning rate to be 75%. The At-Faleh family would like CC to customize a classic chair heirloom. They would like to order six chairs in total for their dining table at their house.
Forecast the cumulative average time per chair to make the first six chairs, and use that average to determine the total production time to make the first six chairs. (Round to two decimal places).(2 marks)
Bonus question (2.5 marks)
Since CC employs experts and specialists in crafting and furniture designing, the direct labour cost per hour is $200. Each chair has a direct material cost of $500. And manufacturing overhead is applied at 120% of direct labor cost. Determine the job costs for Alfaleh's family. (1.5 marks)
CC has a pricing policy of having a 50% mark-up on the total costs. How much does Al-Faleh has to pay for these six chairs?
Alfalch would like to re-negotiate the price above and propose for this particular job as a special order considering this was the last day of the year. Going forward Alfaleh plans to bring more jobs for CC through his family network and connections. If CC would like to consider Alfaleh's request and consider this as a special order, how much is the minimum price CC should charge still wanting to keep a 50% markup on the total costs?
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