The labor cost to produce a certain item is $8.00 per hour. Job setup costs $45 and material costs are $20 per unit. The item can be purchased for $80.50 per unit. The learning rate is 90 percent. Overhead is charged at a rate of 50 percent of labor, materials, and setup costs Use the following table for calculation Learning curve coefficients Unit Number 1 2 3 4 5 6 7 .773 70% Unit Total Time Time 1.000 1.000 .789 1.700 .568 2.268 .490 2.758 .437 3.195 . 398 3.593 .367 3.960 .343 4.303 323 4.626 .306 4.932 .291 5.223 .278 5.501 .267 5.769 .257 6.026 .240 6.274 .240 6.514 6.747 .226 6.973 .220 7.192 75% Unit Total Time Time 1.000 1.000 .750 1.750 .634 2.384 .562 2.946 .513 3.459 .475 3.934 .446 4.380 .422 4.802 .402 5.204 .385 5.589 .370 5.958 .357 6.315 6.660 6.994 . 325 7.319 .316 7.635 .309 7.944 .301 8.245 .295 8.540 sex Unit Total Time Time 1.000 1.000 .800 1.800 .702 2.502 .640 3.142 .596 3.738 .562 4.299 .534 .512 5.346 .493 5.839 .477 6.315 .462 6.777 .449 7.227 7.665 .420 8.092 .410 8.511 .410 8.920 .402 9.322 .394 9.716 .388 10.104 AAAF 85% Unit Total Time Time 1.000 1.000 .850 1.850 2.623 .723 3.345 .686 4.031 .657 4.688 .634 5.322 .614 5.936 .597 6.533 .583 7.116 .570 7.686 8.244 .548 8.792 .539 9.331 .530 9.861 10.38 .515 10.698 .508 11.405 .501 11.907 90% Unit Total Time Time 1.000 1.000 .900 1.900 .846 2.746 .810 3.556 .783 4.339 762 5.101 .744 5.845 .729 6.574 .716 7.290 .705 7.994 .695 8.689 .685 9.374 .677 10.052 .670 10.721 .663 11.384 12.040 .650 12.690 .644 13.334 13.974 9 10 11 12 13 14 .522 16 17 18 19 Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Time 1.000 .789 .568 .490 .437 .398 .367 .343 .323 .306 .291 .278 .267 .257 .248 .240 .233 .226 .229 .214 .209 .204 . 199 . 195 . 191 .187 .183 180 . 177 . 174 Time 1.000 1.700 2.268 2.758 3.195 3.593 3.960 4.303 4.626 4.932 5.223 5.501 5.769 6.026 6.274 6.514 6.747 6.973 7.192 7.407 7.615 7.819 8.018 8.213 8.404 8.591 8.774 8.954 9.131 9.305 Time 1.000 .750 .634 .562 .513 .475 .446 .422 .402 .385 .370 .357 .345 .334 . 325 .316 .309 .301 .295 .288 . 283 .277 .272 .267 .263 .259 .255 .251 .247 .244 Time 1.000 1.750 2.384 2.946 3.459 3.934 4.380 4.802 5.204 5.589 5.958 6.315 6.660 6.994 7.319 7.635 7.944 8.245 8.540 8.828 9.111 9.388 9.660 9.928 10.191 10.449 10.704 10.955 11.202 11.446 Time 1.000 .800 .702 .640 .596 .562 .534 .512 .493 .477 462 .449 .438 .428 .418 .410 .402 .394 .388 .381 .375 .370 364 .359 .355 .350 346 . 342 .338 .335 Time 1.000 1.800 2.502 3.142 3.738 4.299 4.834 5.346 5.839 6.315 6.777 7.227 7.665 8.092 8. 8.920 9.322 9.716 10.104 10.485 10.860 11.230 11.594 11.954 12.309 12.659 13.005 13.347 13.685 14.020 Time 1.000 .850 .773 .723 .686 .657 .634 .614 .597 .583 .570 .558 .548 .539 .530 .522 .515 .508 .501 .495 .490 .484 .479 .475 .470 .466 .462 .458 .454 .450 Time 1.000 1.850 2.623 3.345 4.031 4.688 5.322 5.936 6.533 7.116 7.686 8.244 8.792 9.331 9.861 10.383 10.898 11.405 11.907 12.402 12.892 13.376 13.856 14.331 14.801 15.267 15.728 16.186 16.640 17.091 Time 1.000 .989 .846 .810 .783 .762 .744 .729 .716 .795 .695 .685 .677 .670 .663 .656 .650 .644 .639 .634 .630 .625 .621 .617 .613 .609 .606 .603 .599 .596 Time 1.000 1.909 2.746 3.556 4.339 5.101 5.845 6.574 7.290 7.994 8.689 9.374 10.052 10.721 11.38 12.040 12.690 13.334 13.974 14.608 15.237 15.862 16.483 17.100 17.713 18.323 18.929 19.531 20.131 20.727 Retu .650 .644 .639 .634 .630 17 18 19 2e 21 22 23 24 25 26 27 28 29 30 .233 .226 .220 .214 .209 .284 . 199 . 195 . 191 .187 .183 .180 .177 .174 6.747 6.973 7.192 7.407 7.615 7.819 8.018 8.213 8.404 8.591 8.774 8.954 9.131 9.305 .309 .301 .295 .288 .283 .277 .272 .267 .263 .259 .255 .251 .247 .244 7.944 8.245 8.540 8.828 9.111 9.388 9.660 9.928 10.191 10.449 10.784 10.955 11.202 11.446 .402 .394 .388 .381 .375 .370 .364 .359 .355 .350 . 346 . 342 .338 .335 9.322 9.716 10.184 10.485 10.860 11.230 11.594 11.954 12.309 12.659 13.095 13.347 13.685 14.620 .515 .508 .501 .495 .490 .484 .479 .475 .470 .466 .462 .458 .454 .450 10.898 11.405 11.907 12.482 12.892 13.376 13.856 14.331 14.801 15.267 15.728 16.186 16.640 17.091 .625 .621 .617 .613 12.699 13.334 13.974 14.688 15.237 15.862 16.483 17.100 17.713 18.323 18.929 19.531 20.131 20.727 .606 .603 .599 .596 a. Determine the average unit cost for 20 units, given that the first unit took 5 hours to complete. (Do not intermediate calculations. Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Average unit cost $ 80.313 0 b. What is the minimum production quantity necessary to make production cost less than purchase cost? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Minimum production 10 units