A Technical Solution Provider wants to sharpen their bid process based on a typical 85% learning rate for program installations which occur onsite at the client facility. The first module installation requires 1200 labor hours and the labor rate utilized is $65/hr which includes direct and indirect costs. The V.P. of Sales wants to sell installations in bundles of 5 modules using learning curve advantages. The slope for 85%learning curve is -0.234. The company uses a profit margin at 30% of cost.

Calculate the following details for the first order of five module installation. Use 4 decimal places in calculations. (Note: use a piece of scrap paper and provide the answers only in the space below).

a. Average manufacturing time per unit

b. Average cost per unit

c. Average price per unit that the customer expects to pay as it benefits from the learning curve concept.