Kiran industries is preparing a bid to the government to produce engines for rescue boats. Direct labor costs averages $30 per hour. The company has manufactured these engines over the past 3 years on an exclusive contact and has experience the following costs:

	Total Cumulative Costs
Cumulative units produced	Materials		Labor
10	$60,000		$120,000
20	$120,000		$192,000
40	$240,000		$307,200

The bid request is for an addition 40 units. Kiran uses the cumulative average-time model for applying learning curve analysis. Also assume that the company has adequate capacity to produce the navy order without disrupting current operations.

Kirans rate for learning on the 3-year engine contract in the past, as shown above

________%

NOW assume that Kiran expects a 70% learning curve from this point forward. The number of estimated hours to complete the new order will be