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Question - A product has an average labor cost of $45/hr. The time for the very 1st unit = 10 hours, and steady state is reached at the 4th unit. Your firm's bid for this contract is to produce 8 total units.
1) If the learning curve percentage is 90%, what is the cumulative time for 8 units to be made?
2) If you include a 50% profit margin over your costs, what is the labor portion of the bid?
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