Learning Curve Exercise A buyer at an aerospace company has purchased 100 units of a complex avionics component at a per-unit price of $260, and has collected the following cost data for the component: Table 1. Component Cost Data Costs Direct material Direct labor Overhead Total costs Profit Total per unit Amount $100 60 (4 hours @ $15 per hour) 72 (120% of direct labor) 232 28 260 What should the buyer be willing to pay for the next 900 pieces, assuming an 85% learning curve? What assumptions did you make in coming up with this estimate?