Direct material cost per unit Direct labor time for the assembly of first unit in hours 120 Direct labor cost per hour Learning effect for design hours per unit Variable manufacturing overhead 50% of direct labor cost Fixed overhead cost per Tank $32,000 $90 90% $2,000 (A 90% learning curve implies that b = -0.1520) The first unit is kept on display. A finished Tank carries a 15% mark up on variable cost. It is believed that the learning effect is valid only for the first 15 units. All units thereafter take the same time per unit as the 15th unit Required Determine the total cost to the BAMC for an initial order of 22 Tanks as part of a pilot project. (12 Marks)