Ch$4$A$-8($Algo$)$

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 company expects "learning" to occur relative to labor and also relative to the

pricing of materials, equipment, and supplies.

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 $3,750$ hours and used $$212,500$ worth of materials, equipment usage, and supplies. Labor is $$32$ per

hour. Use Exhibit $4$A$\mathrm{.}6.$

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$?$

Note: Do not round intermediate calculations.

Cost for $10$ more units