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Synaptics had received a contract to produce 5 units of new high-tech communication device (HTCD) system for military. The first unit took 460 engineering working

Synaptics had received a contract to produce 5 units of new high-tech communication device (HTCD) system for military. The first unit took 460 engineering working hours, 340 production working hours to complete and cost $26200 in materials and equipment usage. The second unit took 450 engineering working hours, 270 production working hours to complete whereas fourth unit took 390.50 engineering working hours, 205 production working hours to complete and cost and equipment usage learning rate was 75%. Engineering working hours paid at $30.50 per hour while production workings hours paid at $22.50 per hours. Synaptics completed the first order and got second order of six units and then they got third order of fifteen units. They completed all three orders successfully. Assume same learning continues. The prime contractor now approached Synaptics and asked to submit a bid for producing 35 units of high-tech communication device system (HTCD). a. What will the cost be of the tenth unit of this follow-on contract? b. What will be the average engineering working hours required for producing follow-on contract of 35 HTCD systems? c. What will the average total cost of the follow-on contract of 35 HTCD systems? d. Synaptics completed and delivered the follow-on contract of 35 HTCD systems. They released their workers and equipment to other projects. After long time prime contractor has now approached with another order of 22 units of HTCD system. Suppose there was significant delay between the last follow-on contract of 35 units and this order. Synaptics engineering hours rate increase by 14%, production working hours rate increased by 10% and cost of material & equipment usage increased by 12%. Calculate the cost of this new order of 22 units under assumption that learning didnt continue and they forget what they learned due to the significant delay between orders.

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