Problem 8-53 (Algo) Learning Curves [LO 8-1, 8-5] The following information apples to the questions displaved befow] Elington Compiany manufactures a line of motorbikes and dirt bikes under the trade name CrossCountry. The company has been in business for almost 20 years and has maintained o profitable share of the recreational vehicle market due to its reputation for high-quality products In addition, Ellington's engineering department has kept the company in the forefront by incorporating the latest technology in the Cross Country bikes. Most subassembly work for the bikes is subcontracted to reliable vendors. Howevir. the final assembly and inspection of all products is performed at Elington's plant. Elingtori recently develaped a new brakng system for the CrossCountry Model-500 dirt boke Becalise of the companys currentavailabifty of prodoction capsity. Jim Walsb, production manager, recommended that the first lot of the new completed. The cumulative average labor hours per unif for the braking system was 110 hours. Elington's experience with extend only throuah the fourth production run (tio per batkh) for a totat of 440 units Elinaton's direct laber cout is $22 per diect labor hour. Its manamenent must decife whether to continue proctucing the Required: 1. Elilinatan Company has an immed ate requigement for a total of t,000 units of the braking system. Determine the company s future direct labor costs to produce the requifed brakng system units if t manufactures the unis in house 2. A consultant has advised Joyce that the learing rate forthis ppolication might be closer to 75% What is the effect on projected costs of using a 75% learing rate as opposed to an 808 leatning rate? (Do not round intermediote colculotions.)