How much should be bid for this follow-on contract

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A company has decided to bid on a follow-on contract for 20 units of a product. The company has already produced 10 units (the initial contract) on an 80% learning curve. The 10th unit required 200 hours of labor time. If a fully burdened hour is $100 and the company wishes to generate a 20% profit, how much should be bid for this follow-on contract?

Reference no: EM132177535

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