11. Continuous Compounding. Mark Greene, a control supervisor for County General, Inc., is concerned about an increase in per-unit distribution costs from $24.50 to $25 over the last four years. Greene feels that setting up a new direct-sales distribution network at a cost of $27.50 per unit may soon be desirable.

A. Calculate the per-unit distribution cost growth rate (g) using the constant rate of change model with continuous compounding (i.e. C4=C0eg4). Here, C4 is the per-unit cost after 4 years, C0 is the current cost, e is the exponent, and g is the growth rate.

B. Forecast when (in how many years) the per-unit distribution costs will be equal to $27.50.