1. It costs a development lab $250.0 fabricate a prototype part. The normal learning curve rate is 90%.

1. Estimate the variable unit cost and average cost/unit after 1000 items are produced.
2. Re-compute the costs if the learning rate is 70%.
3. How does the cycle time change due to learning while a new automobile model is launched? Assume a learning rate of 80% and use the initial cycle time as twice the operating cycle time of 60 seconds.