A manufacturer has committed to supply 16 units of a particular product in four months (i.e., 16 weeks) at a price of $30,000 each. The first unit took 1,000 hours to produce. Even though the second unit took only 750 hours to produce, the manufacturer is anxious to know

a. if the delivery commitment of 16 weeks will be met,

b. whether enough labor is available (currently 500 hours is available per week), and

c. whether or not the venture is profitable.

Use the Learning Curve Excel template to answer these questions. Assume the material cost per unit equals $22,000; labor equals $10 per labor-hour, and overhead is $2,000 per week.