A$.$ Based on past experience, what is the learning rate?

B$.$ What bid should LTI submit for the total order of $100$ units, assuming that learning continues?

C$.$ What is the cost expected to be for the last unit under the learning rate you estimated?

Lazer Technologies Incorporated $($LTI$)$ has produced a total of $20$ high$-$power laser systems that could be used to destroy any

approaching enemy missiles or aircraft. The $20$ units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the U$.$S$.$ Department of Defense $($DoD$).$

Testing of the laser units has shown that they are effective defense weapons, and if redesigned to add portability and easier field maintenance, the units could be truck$-$mounted.

T

he DoD has asked LTI to submit a bid for $100$ units.

The $20$ units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit

$6\mathrm{.}4$ and Exhibit $6\mathrm{.}5.$