Direct material cost per unit Direct labor time for the assembly of first unit in hours Direct labor cost per hour Learning effect for design hours per unit $28,000 140 $ 100 90% $500 Variable manufacturing overhead 50% of direct labor cost Fixed overhead cost per system (A 90% learning curve implies that b = -0.1520) The first unit is kept on display. A finished system carries a 10% mark up on variable cost. It is believed that the learning effect is valid only for the first 20 units. All units thereafter take the same time per unit as the 20th unit Required Determine the total cost to the BWA for an initial order of 25 systems to be used to alleviate some of the problems currently facing their system.