$1.$ Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an $10-$session class. From previous experience, you know that your firm follows an $85\%$ learning rate. For this contract, it appears that the effort will be substantial, running $60$ hours for the first session. Your firm bills at the rate of $$200/$hour and the overhead is expected to run a fixed $$600$ per session. If your profit markup is $20\%,$ what will be the Total Price, the Per Session Price, and at what session will you break even?

$$Answer the following three questions:

$1.$ What is the Total Price? This is what you would charge the customer so that you can have your profit markup of $20\%$ over all of your costs. To calculate this, $($i$)$ Figure out the number of hours required per session based on the learning curve. Review the formula we covered in this week$$s reading.

i$($ii$)$ Calculate Session Hours $*$ Hourly Rate for each session.

ii$($iii$)$ For each session, add the overhead cost to the session cost from $($ii$).$

iii$($iv$)$ Find the SUM of all costs from $($iii$).$ This will be the total cost.

iv$($v$)$ Now, you need to add the Markup to the total cost in $($iv$).$ This will be your Total Price.