Lambda Computer Products competed for and wan a contract to produce two prototype units of a new type of computer that is based

on laser aptics rather than on electranic binary bits.

The first unit produced by Lambda took $5\mathrm{.}000$ hours $10$ produce and required $$250\mathrm{.}000$ worth of material, equipment usage. and

supplies. The second unit took $3,500$ hours and used $$200000$ worth of materials, equipment usage, and supplies. Labor is $$20$ per

hour The company expects "learning" to occur relative to labor and also the pricing of parts from suppliers. Use Exhibit $65$

a$.$ Lambda was asked to present a bid for $10$ additional unks as soon as the second unit was completed. Production would stant

immediately. What would this bid be$?$

Cost bar tid mare unts

b$.$ Suppose there was a significamt delay between the contracts. During this time, personnel and equipment were reassigned to ather

projects. What would the new bid be$?$

Now bid