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Bosch Ltd. has developed a special product. Details are as follows: The product will have a life cycle of 5,000 units. It is estimated that market can absorb first 4,500 units at 764 per unit and then the product will enter the "decline" stage of its life cycle. The company estimates the following cost structure: Direct Labour.......... ............ 76 per hour Other variable costs........ 19 per unit Fixed costs will be 340,000 over the life cycle of the product . The labour rate' and both of these costs will not change throughout the product's life cycle. The first batch of 100 units will take 1,000 labour hours to produce. There will be an 80% learning curve that will continue until 2,500 units have been produced. Batches after this level will each take the same amount of time as the 25th batch. The batch size will always be 100 units. Bosch Ltd. has developed a special product. Details are as follows: The product will have a life cycle of 5,000 units. It is estimated that market can absorb first 4,500 units at 764 per unit and then the product will enter the "decline" stage of its life cycle. The company estimates the following cost structure: Direct Labour.......... ............ 76 per hour Other variable costs........ 19 per unit Fixed costs will be 340,000 over the life cycle of the product . The labour rate' and both of these costs will not change throughout the product's life cycle. The first batch of 100 units will take 1,000 labour hours to produce. There will be an 80% learning curve that will continue until 2,500 units have been produced. Batches after this level will each take the same amount of time as the 25th batch. The batch size will always be 100 units