The labor cost to produce a certain item is $8.50 per hour. Job setup costs $50 and material costs are $20 per unit. The item can be purchased for $88.50 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 9ex Time Unit Number 1 2 3 5 6 7 8 10 70% Unit Total Time Time 1.000 1.000 .700 1.700 .568 2.268 .490 2.758 3.195 6398 3.593 .367 3.960 .343 4.303 .323 4.626 305 4.932 .291 5.223 .278 5.581 .267 5.769 257 6.026 -245 6.274 .240 6.514 .233 6.747 .226 6.972 7.192 .224 7.487 .209 7.615 .264 7.819 -199 8.818 . 195 B.213 191 8.484 .187 8.591 .183 3.774 .180 8.954 75% Unit Total Time Time 1.000 1.000 6750 1.750 .634 2.384 562 2.946 .513 3.459 475 3.934 .446 4.380 422 4.802 482 5.284 .385 5.589 -370 5.958 .357 6.315 6.660 .334 6.994 .325 7.319 .316 7.635 7.944 -301 8.245 .295 8.540 .288 B.828 .283 9.111 .277 9.388 -272 9.660 .267 9.928 - 263 12.191 .259 10.449 .255 10.784 .251 10.955 SA 11107 13 14 15 345 BOX Unit Total Time Time 1.000 1.000 .800 1.800 6702 2.502 .640 3.142 .596 3.738 .562 4.299 .534 4.834 .512 5.346 .493 5.839 .477 6.315 .462 6.777 .449 7.227 .438 7.665 8.092 .418 8.511 .410 8.92e 9.322 -394 9.716 .388 10.184 381 10.485 .375 10.860 -370 11.230 ..364 11.594 359 11.954 .355 12.309 -350 12.659 346 13.005 -342 13.347 22 85% Unit Total Time 1.ee 1.000 .850 1.850 .773 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 .558 8.244 .548 8.792 .539 9.331 .530 9.861 .522 10.383 -515 10.898 588 11.405 .501 11.907 .495 12.482 .490 12.892 .484 13.376 .479 13.856 .475 14.331 .47e 14.801 .466 15.267 .462 15.728 .458 16.186 ACA 36 CAD Unit Total Time Time 1.000 1.000 .900 1.900 .846 2.746 .810 3.556 1783 4.339 .762 5.101 .744 5.845 .729 6.574 .716 7.298 -705 7.994 .695 8.689 .685 9.374 .677 10.052 .67e 18.721 .663 11.384 -656 12.040 .650 12.690 .644 13.334 .639 13.974 .634 14.608 .630 15.237 .625 15.862 .621 16.483 .617 17.180 .613 17.713 .609 18.323 .506 18.929 .603 19.531 90 121 .428 12 .309 .482 19 2e .220 24 25 27 28 COO 4 5 6 7 8 10 11 22 13 15 16 17 18 19 20 21 .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 .248 6.274 -240 6.514 .233 6.747 -226 6.93 .22e 7.192 .214 7.487 -209 7.615 284 7.819 199 8.018 -195 8.213 .192 8.484 .187 8.591 .183 8.774 . 15e 8.954 9.131 9.305 .562 .513 .475 446 .422 402 .385 .370 .357 .345 .334 .325 .316 .309 295 .288 .283 .277 .272 .267 263 .259 .255 .251 -247 -244 2.946 3.459 3.934 4.380 4.802 5.204 5.589 5.958 6.315 6.668 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 18.784 10.955 11.202 11.446 .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 3.142 3.738 4.299 4.834 5.346 5.839 6.315 6.777 7.227 7.665 8.892 8.511 8.920 9.322 9.716 10.184 10.485 10.860 11.23 11.594 11.954 12.309 12.659 13.085 13.347 13.685 14.ee .723 686 .657 .634 .614 .597 .583 .570 .558 .548 .539 .530 .522 .515 .588 .501 .495 .490 .484 .479 .475 .470 466 .462 .458 .454 .450 3.345 4.031 4.688 5.322 5.936 6.533 7.116 7.686 8.244 8.792 9.331 9.861 18.383 10.898 11.485 11.987 12.482 12.892 13.376 13.856 14.331 14.891 15.267 15.728 16.186 16.640 17.091 .810 .783 .762 .744 .729 - 716 .705 .695 .685 .677 .670 .663 .656 .650 .644 .639 .634 .630 .625 .621 .617 .613 .609 .606 .603 .599 .596 3.556 4.339 5.101 5.845 6.574 7.290 7.994 8.689 9.374 10.952 18.721 11.384 12.84e 12.690 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 23 24 25 26 26 29 a. Determine the average unit cost for 20 units, given that the first unit took 5 hours to complete. (Round your intermediate calculations and final answer to 3 decimal places. Omit the "$" sign in your response.) Average unit cost $ b. What is the minimum production quantity necessary to make production cost less than purchase cost? (Round your intermediate calculations to 3 decimal places and final answers to the nearest whole number.) Minimum production units