You work at the Electric R US company that produces electric parts. Your company have just received 7 units of a special electric subassembly from an electric parts manufacturer at a price of $340 per unit. A new order has also just come in for your companys product that uses these subassemblies, and you wish to purchase 35 more to be shipped in lots of 7 units each. (The subassemblies are bulky, and you need only 7 a month to fill your new order.)

Assuming a 65 percent learning curve by your supplier on a similar product last year, how much should you pay for each lot at Electri R Us? Assume that the learning rate of 65 percent applies to each lot of 7 units, not each unit. Refer to Exhibit 4A.5. (Round your answers to 2 decimal places.)

Unit	Cost
1st seven	$
2nd seven
3rd seven
4th seven
5th seven