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Tiger Tools manufactures radiators used specifically for Windmills. The company has received an order for 8 radiators from a buyer. The company estimates that it

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Tiger Tools manufactures radiators used specifically for Windmills. The company has received an order for 8 radiators from a buyer. The company estimates that it will take 50 hours to make the first radiator and that 80% learning curve effect will apply in the manufacture of the of the remaining order. The average labour cost per hour for the employee that works on the radiator is R40. Direct material cost per unit is R480. The company has quoted price of R2 500 for each radiator. Calculate the total variable costs that will be incurred for the order

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