Question: 1 . Advanced Robotics Corporation ( ARC ) has developed a series of high - precision robotic arms used in advanced manufacturing processes. ARC has

1. Advanced Robotics Corporation (ARC) has developed a series of high-precision robotic arms used in advanced manufacturing processes. ARC has produced a total of 25 units funded by both internal R&D and a government contract.
Testing has demonstrated that the robotic arms significantly increase manufacturing efficiency. The government has asked ARC to submit a bid for an additional 150 units, with the requirement that they be modified for increased durability and easier integration into existing manufacturing lines.
The 25 units produced so far have the following costs (in millions) listed in the order of production:
Unit Number Cost ($ Million) Unit Number Cost ($ Million)
115144.5
213154.2
310164.0
49.5173.8
59.0183.7
68.5193.6
78.0203.5
87.5213.4
97.0223.3
106.8233.2
116.5243.1
126.2253.0
135.0
Questions: (Please use the appropriate chart in the appendix.)
a. Based on past production data, what is the learning rate for ARC's robotic arm production? (10 marks)
b. What bid should ARC submit for the total order of 150 units, assuming the learning rate continues? (5 marks)
c. What is the cost expected to be for the last unit (the 150th unit) under the estimated learning rate? (5 marks)

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