Z-Corp, a builder of small ships has 10 skilled crafts people who each supply. 250 labor-hours each year. The company is about to construct a new style of ship. The THIRD SHIP is expected to take 6000 labor hours to complete. The firm thinks that 90% will be the learning rate.

1. What is the firm's capacity (labor-hours) in the first year to complete these ships?

2. What would be the total cost of the first three ships if the labor cost is $65.00 per hour?