ESTIMATING PRICES USING LEARNING RATES A buyer placed an initial order with a supplier for 100 pieces at a per-unit price of $281 and was able to collect the following cost data from the supplier Direct Material Costs Direct Labor Costs Overhead Costs Total Costs of Goods Sold Seller's Profit (25% of total) Total price per unit = $100/unit $50/unit (5 hours/unit at $10/hour labor rate) $75/unit (calculated at 150% of direct labor) $225/unit $56 cost markup $281 The buyer now wants to place an order for an additional 700 pieces. She believes the supplier's workforce will become more efficient as they take on more volume Assignment Questions 8. Calculate how many labor hours will be required for volumes of 100 and 200 units respectively assuming a learning curve of 80% (3 points) a. 60 and 80 labor hours b. 500 and 800 labor hours c. 100 and 200labor hours d500 and 200 labor hours 9. Calculate how many labor hours will be required for volumes of 400 and 800 units respectively assuming a learning curve of 80% (3 points) a 400 and 800 labor hours b. 4000 and 8000 labor hours c. 1280 and 2048 labor hours 1545 and 2250 labor hours d 10. What are the labor dollars per unit for the next 700 pieces? (3 points) a $22.11/unit b. $13,56/unit $17.17/unit d. 524 50/unit $32.10/unit 11. What is the new total price/unit for the next 700 pieces assuming learning curve is met? (3 points) a $281/unit $176.50/unit c$181.77/unit d. $194.10/unit b $244 2/unit