Hat Tricks Company $($HTC$)$ is a Buffalo, New York, manufacturer of hats and gloves. Recently, the company purchased a new machine to aid in producing the hat product lines. Production efficiency on the new machine increases with the workforce experience. It has been shown that as cumulative output on the new machine increases, average labor time per unit decreases up to the production of at least $3,200$ units. As HTC$$s cumulative output doubles from a base of $100$ units produced, the cumulative average labor time per unit declines by a learning rate of $80\%.$

HTC has developed a new style of men$$s hat to be produced on the new machine. One hundred of these hats can be produced in a total of $20$ labor hours. All other direct costs to produce each hat are $$19$ per hat, excluding direct labor cost. Direct labor cost per hour is $$60.$ Fixed costs are $$8,000$ per month, and HTC has the capacity to produce $3,200$ hats per month.

Required:

HTC plans to set the selling price for the new men$$s hat at $200\%$ of direct production cost. If the company is planning to sell $100$ hats, what is the selling price? If the plan is to sell $800$ hats, what should be the selling price?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places. Problem $8-52($Algo$)$ Learning Curves $[$LO $8-5]$

Hat Tricks Company $($HTC$)$ is a Buffalo, New York, manufacturer of hats and gloves. Recently, the company purchased a new machine

to aid in producing the hat product lines. Production efficiency on the new machine increases with the workforce experience. It has

been shown that as cumulative output on the new machine increases, average labor time per unit decreases up to the production of at

least $3,200$ units. As HTC$\text{'}$s cumulative output doubles from a base of $100$ units produced, the cumulative average labor time per unit

declines by a learning rate of $80\%.$

HTC has developed a new style of men's hat to be produced on the new machine. One hundred of these hats can be produced in a

total of $20$ labor hours. All other direct costs to produce each hat are $$19$ per hat, excluding direct labor cost. Direct labor cost per hour

is $$60.$ Fixed costs are $$8,000$ per month, and HTC has the capacity to produce $3,200$ hats per month.

Required:

HTC plans to set the selling price for the new men's hat at $200\%$ of direct production cost. If the company is planning to sell $100$ hats,

what is the selling price? If the plan is to sell $800$ hats, what should be the selling price?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

Answer is not complete.