Question: 1. Harrison Industries received a contract to develop 5G cell phone towers. Their first tower cost $1.5 million. They also estimated that their learning curve
1. Harrison Industries received a contract to develop 5G cell phone towers. Their first tower cost $1.5 million. They also estimated that their learning curve is 85%. The client would like to buy the first two prototypes for their own testing. How much should Harrison Industries charge their customers for their transmitters? Hint: Calculate the total cost for 1st and 2nd prototypes.
2. It cost Airbus approximately $280 million dollars to develop their latest aircraft. After studying the costs of developing the next few aircrafts, they estimated that the learning curve on the aircraft development is 70%. What will it cost them to produce their 200th aircraft?
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