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Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts; the second took 1,720 labor hours and $37,440 in parts; the third took 1,580 labor hours and $36,320 in parts; and the fourth took 1,445 labor hours and $35,190 in parts. The company expects learning to occur relative to labor and also relative to the pricing of parts from suppliers.
Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units? (Hint: There are two learning curvesone for labor and one for parts.) Use Exhibit 4A.6.
How many labor hours should Johnson estimate are needed for the additional 12 units?
Note: Round your answer to the nearest whole number.
How much should Johnson estimate the parts cost will be for the additional 12 units?
Note: Round your answer to the nearest dollar amount.

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