Question

Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser sys private research within the research and tems that could be used to destroy any approaching enemy missles or aireraft. The development arm of LTi, but the bulk of the funding came from a contract with the U.S. Department of Detense (DoD), 20 units have been produced, funded in part Testing of the laser units has shown that they are effective dofense weapons, and through redesign to add portabliy and easier DoD has asked LTi to submit a bid for 100 units The 20 units that LTI has built so far cost the following amounts and are listed in the order in which they were floild maintenanon, the units could be truck-mountec produced Use Exhibit 6.4 and Exhibit 6.5 $130 9.5 $4.8 12 8.2 7.1 6.7 6.2 5.8 5.5 5.2 5.0 15 16 17 18 4.1 3.8 3.8 20 a. Based on past experience, what is the learning rate? (Do not round intermediate calculations Round your answer to the nearest whole percent.) Learming rate ь. what bid should LTI submit for the total order of 100 uits, assuming that learing oonnues? Cost for 100 more units S e. What is the cost expected to be for the last unit under the leaming rate you estmated? Expected cost for last unitS

Answer 1

Answers and explanations are given in attached image