1. Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 3,500 hours and used $200,000 worth of material, equipment usage, and supplies. Labor is $30 per hour. (2) Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be? (b) Suppose that Lambda was asked to present a bid for additional 10 units after 3 months delay since the second unit was completed. During this time, personnel and equipment were reassigned to other projects. What would be the total production costs for the additional 10 units? 2. Johnson Industries received a contract to develop and produce four high-intensity long distance receiver/transmitters for cellular phones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts; the second took 1,500 labor hours and $35,100 in parts, the third took 1,450 labor hours and $32,500 in parts; and the fourth took 1,275 labor hours and $31,590 in parts. Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor 2 effects, what should Johnson estimate time and parts to be for the dozen units? Note that there are two learning curves - one for labor and one for parts You have just completed a pilot run of 10 units of a major product and found the processing time for each unit was as follows: Unit Number 1 2 3 4 5 6 7 8 9 10 Time (Hours) 970 740 580 500 420 380 350 320 290 270 (a) According to the pilot run, what would you estimate the learning rate (r) to be? (b) Ifr=0.7, how much time would it take for the next 20 units (11th - 30th)? (c) How much time would it take to make the 100th unit